Microsoft Corporation (NASDAQ:MSFT) is increasingly becoming the most popular cloud computing services provider against major rival Amazon.com Inc. (NASDAQ:AMZN). According to the latest Goldman Sachs survey, Microsoft is steadily gaining market share in the segment.
Microsoft growing its market share in the cloud space
Although Amazon’s AWS still commands a significant market share, Microsoft’s Azure is on the ascendancy and has been gaining traction. Amazon was the first mover in the space, but it appears now it has found a worthy competitor in Microsoft. Although AWS has been attracting several high-profile clients, it has nonetheless been struggling to make a significant impact in large established organizations.
The Golden Sachs survey of chief information officers spending at large companies indicated that they use Microsoft’s Azure cloud and will continue using it. However, AWS is still leading the field in revenue and spending with Microsoft and Google’s (NASDAQ:GOOGL) cloud being among the top three.
The survey focused on the most preferred pick for public cloud in IaaS and PaaS. In terms of both metrics, Microsoft appeared to be gaining a moment surpassing Amazon. Most CIOs stated that they are currently using Microsoft’s Azure over AWS, and the trend has been growing since the last Goldman Sachs survey in December 2017. Similarly, the report indicates that in the next three years, more executives will be using Microsoft’s Azure relative to any cloud service.
Amazon still controls 47.8% of the cloud services business
Recently Gartner indicated that AWS controls 47.8% of the cloud market share relative to Microsoft’s 15.5%. However, Microsoft has been growing its share in recent times as that of AWS shrink. Although the share of AWS has been shrinking, it still commands a larger share of cloud spending.
In the most recent quarter, Amazon’s AWS generated $9 billion. However, Microsoft does not break down its Azure revenue; instead, it lumps it with the rest of its cloud services. Its revenue from cloud services in the most recent quarter was around $11.6 billion. Microsoft is winning against amazon, and recently, it beat amazon to the $10 billion Pentagon JEDI contract.