Home Opinions & Editorials Is Azure on its path to scale AWS market share?

Is Azure on its path to scale AWS market share?

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A conundrum which often emerges in the world of Cloud Computing is ‘Which is better among AWS vs Azure?’ and ‘Whether Azure on its path to overthrow AWS?’

A whopping 98% increase in Azure revenues is reported in the recent running heads. Whereas only a 45% revenue increase is observed in the case of AWS in the past year. However, comparing the percentage increase in revenue of Azure and AWS is like comparing apples and oranges.

Putting things into context and converting percentages into figures, the situation takes an upside-down flip. As per the estimations suggested by Gartner, Amazon’s 44.2% share of the whole IaaS market is worth $9.7 billion. On the other hand, Azure’s 7.1% share of the market is worth $1.5 billion, which is too less when compared with that of Amazon’s.

Would Azure surpass AWS with a growth rate like this?

Bringing things back into context, let us talk about the possibilities of Azure surpassing AWS. If in an ideal world, Azure revenues double for the next five consecutive years and AWS revenues increase by stagnant 45% or less, the two companies will level out in 2022. However, a situation like this is highly unlikely to happen since the math doesn’t add up, as of now. This scenario only plays out perfectly when we ignore other competitors in the market which further would need to multiply itself 10x.

However, with Google taking in Apple as a client and Alibaba expanding into Europe, its revenue growth is skyrocketing by more than 100% with the same growth expectancy in the future. This being the case, levelling with AWS becomes even complicated for Azure.

Is comparing Azure with AWS justified?

Microsoft’s release a combined revenue report called ‘Commercial Cloud Business’ which also includes the revenues generated by Office 365. This makes it inaccurate to compare the statistics of Azure vs AWS.

Also, Azure mostly focuses on large organizations with a Microsoft based infrastructure, in an attempt to shift an already existing architecture to the cloud. On the other hand, AWS is mostly developer-centric.

AWS vs Azure: Conclusion

In the battle of AWS vs Azure, the winner can never be established; since the answer to the question – ‘‘Which cloud is better?’’, depends on the use-cases. AWS has a sure-shot advantage over Azure when it comes to pricing. But, criteria like cloud governance, support, security, infrastructural changes and the size of the organization also play a crucial role in deciding which cloud is better.

It is nearly impossible to predict which one is/will be better out of the two. Azure’s likely to scale its market share in the coming years. But in the current market analysis, it is hard to establish when it will level with AWS. The choice of using Azure over AWS (or vice versa) or using both of these for different use-cases, ultimately, depends on the needs of the organization.

One needs to consider various factors before choosing between AWS and Azure for your cloud infrastructure. For example – pricing, location, level of automation and even the sheer magnitude of the simplicity of these platforms.

To choose which of the two is the best suitable service provider for your infrastructure, take a look at How to choose the best suitable Cloud?

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