Azure vs. AWS Comparison: Is Azure Really Catching Up?

When comparing the leading cloud providers in terms of market share, Amazon Web Services (AWS) has consistently led the pack, followed by Microsoft Azure. Here we conduct an AWS v’s Azure comparison; providing you with key considerations when it comes cloud.  So, who is the leader now?

Amazon Web Services Market Share

Year on year AWS has grown by 29%.  They announced $11.6 billion USD in revenue for Q3 2020, compared to $8.9 billion USD in revenue for Q3 in 2019.

While revenue continues to grow, AWS’ rate of growth is diminishing over time; read on to find out why this may be.

Microsoft Azure Market Share

Microsoft only shows Azure revenue growth by percentage, as opposed to AWS who reports in dollars. In addition, Microsoft combines their revenue from Azure Cloud with other services under the heading “Intelligent Cloud” (which includes revenues from SQL Server, Windows Server, Enterprise Services, and others.).  It is therefore difficult to find the revenue specific to Azure due the addition services, and as a result makes it impossible to compare like-for-like. 

Comparing AWS vs Azure

Given the differing reporting methods of AWS and Microsoft it is impossible to compare a like-for-like of AWS vs Azure market share. However, based on the data we do have, we can make the following comments:

• AWS and Azure are both experiencing revenue growth year over year. In a given quarter, AWS and Azure have shown an increase in the amount they earn compared to the same quarter from the previous year.
• AWS and Azure are both experiencing diminishing revenue growth rates year over year. Although AWS and Azure have seen an increase in the amount they earn based on the same quarter from the previous year, the difference in that amount is getting smaller on average each quarter.
• In the past few years, Azure has had higher revenue growth rates when compared directly to AWS. Most recently in Q3 2020, Azure’s revenue growth was 48% compared to AWS’ revenue growth of 30.3%.
• Azure’s growth rates has been higher in the last four years their revenue growth rate is declining at a faster rate than AWS. AWS’s growth rate between that period decreased by 50%, while Azure’s growth rate decreased by 60% in the same time frame.

We can also look at analyses provided by credible third-party research firms. Recent data from Synergy Research Group indicates that “Amazon and Microsoft continue to account for over half of the worldwide market, with Amazon market share remaining at its long-standing mark of around 33%, while Microsoft’s share was over 18%.”

We can conclude that AWS is still clearly the market leader. While they do not double the market share of other cloud providers as they had in the past, it is primarily because other players, such as Google Cloud Platform, Alibaba, Oracle Cloud Infrastructure, and others.

Is AWS better than Azure?

Given the outline above, are you left wondering, is one cloud provider better than another? When choosing the right cloud provider for your business, market share should not be the deciding factor. There are several factors to consider, and ultimately, the choice will depend on each organisation’s unique needs. If you should consider all pro’s and con’s before considering which multi-cloud approach to take.

We would recommend you compare the different services offered by each cloud provider including the cost, performance, operations, and security benefits and ascertain which aligns best with you.

Do you want to find which platform would work best for your business? Please get in touch.