Microsoft Corporation (MSFT), Amazon.com (AMZN) Battle For Cloud Service Market Edge

In the realm of intelligent cloud services, tech giants are fighting tooth and nail to gain that extra edge over their rivals. The market is led by Amazon.com Inc. (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT). They are also followed by Saleforce, Google, IBM and Oracle in no particular order. Yet which of these corporations is set to secure the biggest chunk of the cloud market?

Demand is no shortage for remote storage and application services, especially in enterprise sectors. According to research by Gartner, the cloud market is projected to climb by 18 percent this year alone. Corporations also use more money on cloud computing today than other IT applications. Research shows business cloud spending as 4.5 times higher and this pace has kept steady since 2009.

However, cloud consumption is set to jump up to 6 times greater than normal IT spending. This is pegged to take place between 2015 and 2020.

For those on the prowl for booming cloud stocks, you’re in luck. Today, Learnbonds looks at the market’s biggest cloud vendors.

Amazon (AMZN) Web Service

Depending on who you ask, you can’t beat Amazon when it comes to cloud dominance. Wikibon has research to back this too. The research site recently dedicated itself to answering the question, “How big can Amazon Web Services get?” In response, Wikibon is adamant that the platform will be massive in years to come.

In 5 years, AWS will likely rake in $43 billion in revenues. That means the service will account for nearly 8.2 percent of the overall cloud business in 2022. It truth, that will be a bit less than what it holds right now. Yet the rise of competitors gaining in the cloud market moves at a formidable pace. Bearing that, Amazon’s capacity to retain its cloud market dominance means the vendor loses very little influence in the long-run.

By overall consensus Amazon Web Services will continue to lead the cloud market for the next half a decade, but the online giant will not be running laps around any of its rivals. Its layer dominance beyond 2022 will be laid thin in the face of market rivals.

A widespread survey shows that enterprise users are skeptical of one-size-fits-all cloud solutions. Beyond that, the dominance of U.S. companies stands to be watered down by great deal in the future.

amazon.com inc (AMZN) Web Services

Microsoft and Azure

Microsoft is undeniably at the edge of the intelligent cloud sector. It is the only rival that effortlessly keeps with Amazon, always hot on its heels in the race to secure cloud dominance. The Windows OS and its related software isn’t doing too badly either. Windows 10 has proven to be Microsoft Corporations comeback operating system. However, the success of Windows is mostly tethered to the dwindling PC market.

Microsoft Corporation (NASDAQ:MSFT) moved its focus to more cloud-based incomes several years ago. The Windows giant has dedicated itself to producing cutting edge virtualization technology combined with self-service capabilities. This came as much-needed move in the face of falling computer sales around the world.

It is a move that rescued Microsoft from the declining adoption of Windows and its related software. Today, Microsoft Corporation sees no shortage of private and corporate consumers making use of its cloud products.

A shift to the cloud too

It the Azure platform which has turned cloud into Microsoft Corporation’s biggest growing business.
The intelligent cloud platform now makes up nearly 20 percent of MSFT total revenues. It is growing faster than any of the company’s business divisions too.

Azure will keep growing at impressive rates too, according to reports. The resources that Microsoft Corporation has dedicated to boosting the intelligence of its cloud tools is evident of a company migrating to cloud-intensive business model.

Case in point is Windows 10 S, Microsoft’s latest operating system. The platform is inclined towards Microsoft’s cloud offerings. It was unveiled at the beginning of May. The new system was pushed onto the education sector and comes as aid to Google’s Chrome OS. It is also closed off from applications not offered on the Windows Store. Windows 10 S can be seen as Microsoft’s play at interweaving Windows and the cloud closer together.

Right now, a popular notion is that the race for cloud dominance will come down to a heated price war. But price clearly isn’t an issue when it comes to Microsoft and Azure. More than 80 percent of the intelligent cloud platform’s user base is made up of premium. Corporations don’t opt for Azure merely for its prices, which is fantastic news for the company.

Microsoft Azure at thethe edge of AI

Combined, MSFT cloud divisions bring in $15 billion a year. The tech firm is set to put its cloud solutions ahead of even more conventional offerings by infusing them with greater intelligence systems.

Azure also oversees the biggest deployment of custom field-programmable gate arrays (FPGAs) in the world. FPGAs are smarter, more versatile processor chips. They are placed in all of Microsoft’s data centers worldwide. Satya Nadella, CEO at Microsoft Corporation, claims Microsoft is the world’s “first AI supercomputer”.

Everyone Gets AI Cloud – Microsoft

Nadella is sure his company holds several advantages over its cloud rivals at this point. According to the CEO, this is because market giants give less to the more important aspects of AI and cloud solutions. To him, that involves deep consideration as to how the cloud software should ideally be used to interact with people.

“[W]hen you look at the capability around speech recognition, who has the state of the art? Microsoft does,” the CEO asserted. “[W]ith image recognition? Microsoft again. [T]hose are not subjective,” he went on to defend, “they are judged by objective criteria.”

By taking in leading firms in the realm of AI solutions, Microsoft manages to gain more expertise, and greater exposure to its own services.

Satya Nadella wants to democratize the power of cloud AI much like Microsoft (NASDAQ:MSFT) helped enable information are people’s fingertips. “We want to bring intelligence to everything, to everywhere and for everyone.”

The Bane of Amazom (AMZN), Microsoft (MSFT) and other cloud giants

Enterprises are skeptical of one-size-fits-all cloud services, says Wikibon. In terms of legacy systems, businesses are not sure about the likes of AWS. It is true that Amazon has taken significant steps to make migrating legacy systems a simple process. Although, running up your own virtual machine remains simpler still.

There is also Amazon’s need to secure Internet of Things (IoT) sectors as they come into fruition. The IoT space is an industry that thrives on the inter-networking of connected, smart devices. IoT designs allow devices to work together in order to analyze and exchange data. But the likes of AWS have trouble securing these market.

Right now, IoT solutions remain localized and isolated from each other. Major cloud vendors need to encourage IoT architects to project theirs systems globally in an effort to have them used for local applications. This is a long way off.

The growing politics around big data won’t help things either. Analyst Peter Burris of Silicon Angle claims this will hurt giants like Amazon and Microsoft in the long-run. The legal, ethical and privacy issues regarding the exchange of information and its access surge across the board. Worse still, governments grow ever more concerned about the U.S.’s dominance over big data. Nearly every major cloud vendor is of an American company. Globally, the future is set to see governments and companies pull away from U.S. cloud vendors. According to Burris, they will be repelled by the dominance of the U.S. corporations in the handling of big data and sensitive information.