Revenue from Microsoft’s commercial cloud business, including Azure and Office 365, approached $10 billion in the fiscal year ended June 30, up almost 40 percent from the previous year, and more than three-fold over the past two years, according to a new Microsoft regulatory filing.
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Synergy included infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and hosted private cloud services in its figures.
This shouldn’t come as too much of a surprise to IT people in the know, but new research data released August 1 from Synergy Research Group shows that Amazon Web Services, Microsoft, IBM and Google combined control well more than half of the worldwide cloud infrastructure service market. Unfortunately, due to some rather creative reporting on Microsoft’s part, nailing down exactly how well the company has been doing at chasing industry leader Amazon while putting some distance between itself and other competitors such as Google or IBM has been a bit more hard.
“In a variety of ways Amazon and the other big three players have distanced themselves from the competition in this market and continue to widen the gap”, said John Dinsdale, Research Director at Synergy Research Group.
In comparison, the next 20 largest cloud providers, which include Rackspace, Salesforce, Hewlett Packard Enterprise, Alibaba, and others, grew by 41%.
Although the segment accounts for a small portion of the company’s overall revenue, it certainly offers a huge potential for growth, considering the strong demand of cloud services.
Talking of India as a market for public cloud space, it is growing at over 30%, and Gartner expects that public cloud services in the country will reach $1.26 billion in 2016.
The company now has more than 70 services that including storage, networking, database, analytics, application services, deployment, management, mobile, developer tools, and tools for internet of things (IoT) development. This represents a slowdown from 210% growth in the first quarter, but AWS’ operating margins expanded both sequentially and annually.
In a report released Monday on the second-quarter market shares of Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and hosted private clouds, SRG found that AWS’ market share of about 31 percent is significantly larger than those of its three main competitors – Azure, IBM and Google.
North America remained the largest market, representing 55.3% of the worldwide total, followed by EMEA at 24.7%, Asia Pacific at 15.9% and Latin America at 4.0%. The report noted that the APAC region has a somewhat higher growth rate. Specifically, it’s worth taking the time to determine what advantages the company would gain through their service, such as higher customer retention or streamlined product delivery.
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“But not every organisation and every workload will migrate to the Cloud”.
