Synergy: Microsoft Makes Gains on Amazon in IaaS
The top dog in the infrastructure-as-a-service (IaaS) market remains Amazon Web Services, but a new report from Synergy Research Group shows that Microsoft Azure has made incredible strides and has earned the No. 2 spot.
The top dog in the infrastructure-as-a-service (IaaS) market remains Amazon Web Services (AWS), but a new report from Synergy Research Group shows that Microsoft Azure has made incredible strides and has earned the No. 2 spot.
First-quarter data shows that Microsoft’s cloud infrastructure service business has grown considerably by revenue and is “pulling away from the pack of operators that are chasing Amazon.” Of course, the 800 pound gorilla of the public cloud space has little to worry about just yet. Synergy noted that Amazon has greater market share than its four nearest rivals combined.
That said, Synergy stated that Microsoft Azure has established itself as the clear No. 2 provider in the market.
Synergy based its research on quarterly financial earnings from each of the major cloud infrastructure providers. Quarterly earnings overall in the IaaS space reached approximately $3.5 billion. The market has grown annually by 50 percent. Amazon, Microsoft, IBM and Google each gained market share over the last four quarters, the research firm noted.
Of that $3.5 billion, Amazon currently holds approximately $1 billion of that quarterly revenue, but Synergy stated that Microsoft and IBM can both also claim impressive cloud revenue. But although Amazon’s revenue mostly comes from IaaS, Microsoft and IBM are more focused on software-as-a-service (SaaS), cloud-related hardware or associated professional/technical services.
“Microsoft’s cloud growth really is impressive,” said John Dinsdale, a chief analyst and research director at Synergy Research Group, in a prepared statement. “A combination of marketing muscle and credibility with the target audience is helping it to make great strides. Nonetheless, Amazon’s revenues are still more than three times those of Microsoft and it will remain in a league of its own for the foreseeable future.”
Whether Microsoft can gain enough market share to vie for the number one spot is unknown. If so, that could be years off. Amazon may not have much to worry about now, but that could change over time as its major competitors continue to beef up their offerings and aim to improve over the Amazon model.