According to technology research firm, Synergy Research, Microsoft has again increased its market share in the cloud business during Q2, 2018. Its market share increased more than that of competitors, such as Google. It means that Microsoft is giving Amazon, the current market leader, a run for its money.
This comes as Google and Amazon released products covering a core market, which Microsoft entered before they did: the hybrid cloud, where clients use a mix of cloud services and applications they run in their in-house data centres.
During Q2, 2018 Microsoft Azure enjoyed a 14% market share in the cloud infrastructure market, three percentage points more than at the same time last year. Google increased its market share by 1 percentage point to 6%, while Amazon remained stagnant at 34%.
During Q4, 2017 and Q1, 2018, Microsoft recorded bigger share gains than Amazon. This market is separate from SaaS and doesn’t include hosted applications such as Salesforce, Microsoft Office 365, and Workday.
Reporting its earnings for Q2, on July 26, Amazon showed a huge 49% increase in the revenue of its cloud business to $6.11bn. Although not divulging the revenue for its Azure cloud, Microsoft said the total increased by 89%.
Discussing Microsoft’s earnings call released on July 19, Morgan Stanley analyst, Keith Weiss, asked Microsoft’s Nadella to explain how clients use of Azure was changing over time. Nadella replied that, instead of radical changes, an approach articulated earlier to give businesses the tools to run the same applications in their own data centres, and in the Microsoft cloud, and gradually switch to the cloud, was succeeding.