Amazon Web Services could be overtaken by Azure

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7 July 2016 | 0

In what could be foreshadowing a momentous shift in the infrastructure as a service (IaaS) public cloud computing market, a survey of CIOs by investment bank Morgan Stanley has found they are more likely to use Microsoft Azure compared to Amazon Web Services (AWS) in the coming years.

The results of the survey are noteworthy because since the dawn of the IaaS cloud computing market Amazon Web Services has been seen as the top vendor. Morgan Stanley’s 2016 State of the CIO report shows that could be changing though.

Just over 20% of CIOs reported they are using Amazon Web Services today, while about 10% said they are using Azure. In three years, however, those ratios change, with more respondents saying they are planning to use Azure over AWS by a small, single-digit percentage margin.

Tim Crawford, an independent CIO advisor at AVOA says he has seen a shift in the market.

“On the ground, I’ve seen folks sliding more toward using Azure than AWS in the corporate IT space,” said Crawford.

Most large businesses are already using some Microsoft products so adding Azure on to their existing enterprise license agreement is relatively easy. Crawford says Microsoft should be more forthcoming with big-name customer wins. Amazon, meanwhile, won’t be resting on its laurels in the cloud market, he says.

Overall, the CIOs with whom Morgan Stanley spoke reported a strong willingness to use public cloud services. On average, CIOs expect 30% of applications to be in the public cloud by the end of 2017, which is up from 14% currently.

Even as IT budget growth is slows (budgets are expected to grow at 3.7% this year, compared to 4.8% last year), cloud, business intelligence/analytics and security are the top spending priorities for CIOs this year, the survey found.



IDG News Service

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