Cloud computing: Microsoft Azure ups the pressure on AWS (2024)

Microsoft Azure revenues might be lagging Amazon Web Services (AWS), but according to a new survey by enterprise IT management firm Flexera, adoption of Azure'scloud-computing options may now have overtaken AWS in some cases.

Flexera's new 2022 State of the Cloud report gathered the opinions of 753 respondents in late 2021 and found that Azure was the only public cloud provider whose adoption had grown significantly over the past year.

Today, 80% of enterprises are using Azure, up from 73% last year, while AWS's share dropped from 79% to 77% in the period.

SEE: Cloud computing is the key to business success. But unlocking its benefits is hard work

Google Cloud is yet to become profitable, but it is a comfortable third-runner with 48% adoption, down from 49% last year, while adoption of Oracle Cloud Infrastructure dropped from 32% last year to 27% today. IBM Cloud's share was flat at 25%.

The report also looked at whether users were running significant workloads, some workloads, or just experimenting with a provider.

Azure and AWS were tied on significant workloads at 47%, while 33% of enterprises were using some workloads on Azure versus 33% in this category on AWS.

The good news for Google Cloud's ongoing push to win marketshare is that 23% of respondents are experimenting with it, which signals potential revenue growth in the future.

AWS still leads Azure among SMBs. However, even here Microsoft is closing the gap. AWS's 69% share among SMBs was down from 72% last year versus Azure's 59% share today, up from 48% last year. GCP's share rose from 39% to 43% year on year. Oracle Cloud also won more SMBs and had a 28% share, up from 15%, while IBM was up from 20% to 24%.

Today, of course, few are locked in with one cloud provider. Multicloud continues to growand is basically the norm. Flexera found that 79% of organizations are using multiple public clouds while 60% are using more than one private cloud.

Despite this, it found that 45% of apps are siloed on different clouds, so while they are using multiple clouds, each app is stuck on one provider. Some 44% are using multiple providers for failover when major cloud outages occur. That seems sensible, given that in the past two years, AWS, Azure and Google have suffered several hour-long outages.

SEE: What is cloud computing? Everything you need to know about the cloud explained

The challenge of managing security in multicloud justified Microsoft's recent move to bring Defender for Cloud to Google Cloudand AWS. It also makes projects like Cloud Security Notification Framework (CSNF) necessary. Among large enterprises with more than 10,000 employees, multicloud security tools are now, at 41%, the top tool used by organizations, followed by multicloud cost management tools at 37%. Governance tools and management tools were used by 34% and 33% of large enterprise, respectively.

Cost management tools are critical because the survey found respondents believed their organizations waste 32% of cloud spend. However, waste is likely higher, Flexera notes.

While Azure may be narrowing the gap in some areas, AWS is still the biggest cloud provider by some way: according to data from Synergy Research, Amazon, Microsoft and Google continue to account for more than half of worldwide cloud spending, with Q3 2021 market shares of 33%, 20% and 10%.

Cloud computing: Microsoft Azure ups the pressure on AWS (2024)

FAQs

Which cloud is better Azure or AWS? ›

Reliability: AWS is more reliable than Azure. It has better uptime and availability, and its cloud services are more stable than Microsoft's. Features: AWS has more features than Azure, meaning it can do more for you in the long term (and save you money).

Can Azure surpass AWS? ›

While Amazon has dominated the industry for more than a decade, AWS is growing far more slowly than Microsoft's Azure cloud infrastructure unit. If current trends continue, Azure could be the industry leader by 2026.

What are the advantages of Azure vs AWS? ›

Maximize performance and value for migrated SQL Server workloads. See how migrating SQL Server workloads to Azure Virtual Machines can help lower total cost of ownership (TCO). SQL Server on Azure Virtual Machines performs up to 57 percent faster and costs up to 54 percent less than AWS EC2.

What is cloud computing AWS quiz answers? ›

Cloud computing is the on-demand delivery of computing, database storage, applications and other IT resources through a cloud service platform via the Internet as a Pay as you go service.

What are the three 3 major advantages of cloud computing? ›

The top 10 benefits of cloud computing topics
  • Accessibility anywhere, with any device.
  • Ability to get rid of most or all hardware and software.
  • Centralized data security.
  • Higher performance and availability.
  • Quick application deployment.
  • Instant business insights.
  • Business continuity.
  • Price-performance and cost savings.

What is the main difference between Azure and AWS? ›

One of the main differences between Azure and AWS is the scope of services they offer. Azure has a more extensive range of services that cover a wide range of scenarios, including artificial intelligence, internet of things, and blockchain, while AWS services are more focused on infrastructure, storage, and databases.

Why is Azure the best cloud? ›

Azure facilitates SQL and NoSQL data services and built-in support for digging deeper into data and uncovering key insights for improving business processes and decision making. Azure is the only cloud platform that offers Blockchain as a Service (BaaS), Machine Learning, Bots, and Cognitive APIs capabilities.

Which cloud platform is best? ›

Best Cloud Service Providers Shortlist
  • Google Cloud Platform — Best for machine learning and data analytics.
  • Oracle Cloud — Best for business-critical applications.
  • Amazon Web Services (AWS) — Best for enterprise companies.
  • Scaleway — Best for European cloud services.
  • IBM Cloud — Best cloud security.

Why do people prefer Azure over AWS? ›

Azure is more established in the hybrid cloud market in comparison with AWS which is still a work in progress. Microsoft Azure provides holistic hybrid cloud functionality that extends to on-premise data center. Its services enable you to connect your private cloud with its public services.

Why do people use Azure over AWS? ›

Azure Active Directory is a single source for permission management and authorization. Unlike AWS where users, federation, and access to each account has to be configured, Azure lets you do this from a single directory.

Is AWS losing to Azure? ›

With hyperscalers' second-quarter earnings now in the books, it's clear that Microsoft Azure, Google Cloud and, yes, even Oracle Cloud, are growing at a much faster clip than the longtime leader. AWS has not relinquished its standing as the king of cloud computing since its founding in 2006.

What should I choose between AWS and Azure? ›

They both offer a wide range of services, but AWS has a slight edge over Azure when it comes to global reach. AWS also offers more pricing options, while Azure has more features in its SDK. In the end, it's up to the individual business to decide which provider is best for them.

What pays more, AWS or Azure? ›

In terms of salary, AWS-certified professionals can expect a slightly higher pay scale due to the broader usage and adoption of AWS services. However, Azure-certified professionals also command competitive salaries, especially in companies with a strong Microsoft focus.

What is cheaper, Azure or AWS? ›

The cost of running Windows instances on AWS can be up to 5X more expensive than using your existing Windows SQL Server and SQL licenses with Azure. The reason is that you have to purchase Windows licenses separately when using AWS.

What are the advantages of cloud computing over cloud computing on-premises? ›

Some of the main advantages of the cloud computing model are: Cost efficiency. Since the cloud service provider covers all costs connected with the servers' maintenance and management, their clients may save up the funds they would otherwise spend on on-prem data centers. Scalability.

What are the advantages of cloud computing over on-premises quizlet? ›

cloud computing provides a simple way to access servers, storage, databases, and a broad set of application services over the internet. you own the network-connected hardware required for these services and amazon web services provisions what you need.

What are the advantages of cloud vs on-premise? ›

Cloud development platforms charge per user, dramatically reducing your upfront costs compared to on-premises solutions. You won't need hardware or physical infrastructure, so you will have no capital expenditures. Many plans include landline connectivity, so you pay one bill.

Why is AWS cloud better than on-premise? ›

With the cloud on AWS, the security protocols and encryption are actually built into the entire AWS infrastructure by default. This means that you just have to pay for computing time as well as storage space that is used. You also gain security and encryption without any additional charges.

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