Microsoft’s Azure gains ground as Amazon AWS loses 4th quarter market share

Dave W. Shanahan

Microsoft’s cloud strategy is beginning to pay off as its Azure platform gained some ground as Amazon AWS lost 4th quarter market share. As noted in a CNBC report, Amazon lost to Microsoft in the 4th quarter of 2017. Azure is continually gaining market share over AWS.

According to the KeyBanc report, Microsoft “has more pre-built models than other public cloud vendors” and has more Azure datacenters throughout the world, making it easier to reach more enterprise customers.

“After our conversations with leaders at Microsoft, we came away believing the majority of revenue will come from the surrounding infrastructure costs, rather than the monetization of specific AI services, due to the required intensive model training and ongoing inference.”

Microsoft made bigger investments in Azure, and has added many datacenters in the UK as well as around the world. It was only a matter of time before Azure cloud platform would be able to overtake AWS. KeyBanc estimates that Microsoft’s Azure platform will grown another 88% in 2018.