Cloud computing market Amazon lost to Microsoft Microsoft accounted for 20% in the fourth quarter
In the fourth quarter of 2017, the cloud computing market saw a significant shift. Amazon AWS, which had long dominated the sector, experienced a drop in its market share by 6 percentage points, falling from 68% to 62%. Meanwhile, Microsoft's Azure cloud service made impressive gains, climbing to 20% from 16%. This growth was highlighted by KeyBanc, a U.S. brokerage firm, which noted that Microsoft's cloud market share increased by 4% during the same period.
According to a report from KeyBanc analyst Brent Bracelin, the shift in market dynamics reflected Microsoft’s strong performance in the cloud sector. The report also mentioned that Google's cloud services saw a modest increase, rising from 10% to 12%. This marked a turning point for Microsoft, as Azure began to challenge Amazon’s long-standing leadership in the industry.
Microsoft's Azure cloud brought in $3.7 billion in revenue in 2017, showing a nearly doubling in revenue over recent quarters. Analysts were optimistic about Azure's future, predicting an 88% revenue growth in 2018. On the other hand, Amazon AWS continued to grow, with its third-quarter 2017 revenue increasing by 42%, showing that it remained a powerful player in the market.
Despite this, the report emphasized that Azure offered more comprehensive services compared to its competitors, giving it a competitive edge. With its expanding feature set and growing market presence, Microsoft was clearly making a strong push in the cloud computing space.
The data painted a picture of a highly competitive landscape, where innovation and strategic moves played a crucial role in determining market share. As both companies continued to invest heavily in their cloud platforms, the race for dominance in the cloud computing industry showed no signs of slowing down.
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