AWS held a sizeable 62 percent market share during the three months that closed last year. That represents a six percent slip from 68 percent in 2016. That six percent AWS slide went to rivals, with Microsoft taking the lion’s share. Azure scored a 20 percent share of the cloud market in Q4 2017, up from 16 percent year-on-year.
Azure Driving Cloud Growth
In its report, KeyBanc estimates Azure’s revenue reached $3.7 billion during 2017, nearly double the 2016 amount. Back in October, Microsoft released its FY18 Q1 earnings which bested analyst predictions. From its $24.5 billion revenue, cloud was a major contributor. Indeed, the Intelligent Cloud division raked in $6.9 billion, up 14% from 2016. Azure was the main cog in this growth, with an increase of 90%. “This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said Satya Nadella, Microsoft CEO at the time. “Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform.”
