Microsoft Azure Cuts into AWS’s Market Share in 4th Quarter

Jan 19

Microsoft’s Azure is finally gaining a foothold in the cloud computing niche with its market share jumping from 16 to 20 percent in the 4th quarter of 2017. The jump amounts to around $3.7 billion of its total revenue for the year. In contrast, Amazon Web Services (AWS) saw its market share drop from 68 to 62 percent in the same time frame.

The latest industry figures were provided by analysts from KeyBanc, a Cleveland-based boutique investment bank specializing in mergers and acquisitions.

With the cloud computing market still in its infancy, tech companies are busy positioning themselves to gain the upper hand in the lucrative niche. At the moment AWS is the dominant player, but this year will likely see many companies significantly expand their respective cloud computing divisions so as not to get left out of the emerging market.

Microsoft, for one, has already made sizable investments in Azure, gearing up for the inevitable competition. The company recently added a number of data centers in the UK and other parts of the globe. Factoring in Microsoft’s efforts, KeyBanc expects the Azure platform to grow rapidly, projecting a massive 88 percent increase by the end of 2018.

It’s fair to say Microsoft is on a buying spree in an effort to boost its market presence and clout. Recently, it acquired Avere Systems, a startup specializing in data storage solutions.

But as expected, AWS will not take the challenge sitting down. Last November, it announced a new partnership with Cerner, a firm specializing in offering technology solutions for the healthcare industry.

[Image by Azure/Facebook]

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