AWS vs Azure Market Share: Who’s Leading the Cloud Race?

Updated Time : January 18, 2024
Aws vs Azure Market Share

Table of Contents

It’s a wise decision if you’re considering adopting cloud services for your company. You may get greater flexibility, work more efficiently, save money, and protect your data with cloud computing.

The crucial query at hand is: which cloud service should you choose? 

When making this choice, the complexities around cost-effectiveness, performance, and scalability can frequently confuse and put you in a difficult position.

Don’t worry; I’ll solve the puzzles in this blog and offer workable answers to help you make decisions. 

By providing you with knowledge of the AWS vs. Azure market share, I aim to enable you to make decisions specific to your needs.

Are you prepared to take off into the cloud? Let’s dive in!

What is AWS?

One of Amazon’s most popular and extensive cloud computing platforms is called Amazon Web Services (AWS). 

The first public release of Amazon Web Services (AWS) in 2006 signaled the beginning of cloud computing. AWS led the industry by launching ground-breaking technologies, including the Simple Queue Service (SQS), EC2 compute machines, and S3 bucket storage.

According to Synergy, AWS is the leading cloud service provider, with a 33% market share and generating US$80 billion in sales annually in 2022. 

The platform presents a strong portfolio with over 200 services thoughtfully dispersed over 99 availability zones in 31 countries. 

Among the many services available, some popular AWS services include:

  • Machine Learning
  • Containerization
  • Block Storage
  • Compute Clusters
  • Strong Databases and Data Lakes. 

The following elements support AWS’s supremacy in the cloud market:

  • There is a sizable and vibrant user and development community on AWS.
  • AWS is continuously developing and introducing new products and services.
  • AWS is both dependable and scalable.

Look at the following graph of Statista, which illustrates the growth of AWS’s revenue in the years 2014-2023:

 illustrates the growth of AWS’s revenue in the years 2014-2023

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What is Azure?

Microsoft Azure, commonly referred to as Azure, is Microsoft’s cloud computing platform and infrastructure. 

Azure began operations in 2010 and has since expanded to become a cloud-based platform offering more than 200 products and services. 

Organizations can choose from these services to develop and scale new applications or run existing applications in the public cloud. 

According to AAG IT, 63% of organizations used Microsoft Azure to run their apps in 2020. Regarding productivity suites, Microsoft 365 held an 87.5% market share in the same year.

Here are the key services offered by Azure:

  • Virtual Machines: These are scalable computing resources that allow users to run virtualized Windows or Linux servers in the cloud.
  • Blob Storage: A massively scalable object storage solution for unstructured data. It’s ideal for storing documents, multimedia content, backups, and more.
  • SQL Database: A managed relational database service that supports SQL Server, offering high availability and security features.

Azure offers services like Azure Kubernetes Service (AKS) for container orchestration, Azure Active Directory for identity services, and Azure Functions for serverless computing.

Look at Statista’s revenue graph of Azure to understand how well it performs globally as a cloud service provider:

 graph of Azure

AWS vs. Azure: Market Share Analysis

The Register stated that the global market for infrastructure services reached $120.3 billion in 2022, driven mostly by Microsoft’s Azure and Amazon Web Services (AWS), which had a dominant 40% and 21.5% of the market share, respectively. 

While Azure’s revenue was close to $26 billion, AWS exceeded $48 billion. 

With $9.28 billion, China’s Alibaba Cloud ranked third in the competitive landscape, marginally ahead of Google Cloud. 

Interestingly, the top five providers controlled more than 80% of the market between them, with the remaining competitors splitting the remaining 18.9% or $22.7 billion in revenue. 

Azure and AWS are clearly in the lead in the cloud war, and their sway is growing.

The graph below shows the growth of Azure and AWS over the years.

the growth of Azure and AWS over the years.

Now, we will go through a table to learn about the differences between Azure and AWS market shares at once:

FeatureAWSAzure
Market Share32%23%
Availability31 regions, 99 Availability ZonesMultiple regions worldwide
Age11 years old5 years old
PricingPer second pricing with a 60-second minimumPer-minute basis

Year-over-Year Adoption Rates

AWS’s market share grew by 21% in 2022, while Azure’s market share grew by 24%according to AAG IT. This shows that Azure is growing faster than AWS and is quickly closing the gap.

There are two reasons for Azure’s rapid growth. 

  • Microsoft invests heavily in Azure and constantly adds new features and services. 
  • Azure is closely integrated with Microsoft’s other products and services, such as Office 365 and Microsoft Dynamics 365. 

This makes it a good choice for enterprises already using Microsoft products.

Global Landscape of Cloud Service Providers

Cloud computing is one of the most rapidly advancing sectors within the IT industry. 

As of 2022, the global valuation of the cloud computing market reached an impressive $494.7 billion, with projections indicating a remarkable growth trajectory to reach $947.3 billion by 2027.

Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) have emerged as the primary contributors, collectively commanding most of the global market share in this dynamic landscape.

Market Dynamics in Key Regions: AWS Reigns

According to Global News Wire, in 2022, the global cloud computing market was valued at $494.7 billion, and it is expected to grow to $947.3 billion by 2027. Here is a breakdown of this statistics as per region:

  • United States: AWS leads the way with a commanding 33.1% market share, followed by Azure at 20.9% and GCP at 10.8%. 
  • United Kingdom: AWS dominates the UK market with a substantial 32.2% market share, followed by Azure at 22.2% and GCP at 9.8%.
  • Germany: The German cloud market mirrors the UK, with AWS at 31.9%, Azure at 19.6%, and GCP at 12.3%.
  • France: AWS continues its dominance in France with a 32.1% market share, trailed by Azure at 20.8% and GCP at 10.9%.
  • Italy: The Italian market echoes the French scenario, with AWS leading at 32.7%, Azure at 21.0%, and GCP at 11.2%.
  • Japan: In Japan, AWS commands a 31.9% market share, Azure follows at 21.6%, and GCP at 12.0%.
  • India: AWS retains its leadership in India with a 32.6% market share, Azure at 20.8%, and GCP at 11.4%.
  • Brazil: The Brazilian market aligns with the global trend, where AWS leads at 30.7%, Azure at 21.7%, and GCP at 11.3%.

Factors Influencing Market Share

Navigating the cloud computing landscape can be a daunting task for businesses of all sizes. 

Two prominent players in this domain, Amazon Web Services (AWS) and Microsoft Azure, have captured a significant market share, offering a comprehensive suite of services catering to diverse needs. 

However, selecting the right cloud platform requires careful consideration of various factors, including pricing models, partnership strategies, service reliability, developer ecosystem, and community support.

Let’s learn about these significant factors in a more detailed way:

Factors Influencing Market Share

1. Pricing Models and Strategies

Cloud platforms, such as AWS and Azure, employ diverse pricing models and strategies to accommodate the varying needs of users. 

Understanding these approaches is vital for organizations seeking cost-effective solutions for their workloads.

Dynamic Pricing

  • AWS: Known for its extensive service offerings, AWS employs a dynamic pricing model that adjusts charges based on factors like usage patterns and resource allocation. This flexibility can lead to cost savings for organizations with fluctuating workloads.
  • Azure: As a Microsoft entity, Azure often leans towards bundled pricing, offering cost predictability and simplified expense management. Additionally, Azure provides dynamic pricing options for users seeking flexibility in their resource utilization.

Reserved Instances

Both AWS and Azure offer discounts for Reserved Instances (RIs), allowing users to commit to extended usage of specific resources.

AWS
  • Offers RIs with varying terms, ranging from one to three years.
  • Provides discounts of up to 72% for three-year RIs.
Azure
  • Offers RIs with terms of one to three years, providing additional options for flexible terms.
  • Provides discounts of up to 80% for three-year RIs.

Free Tiers

Both AWS and Azure incorporate free tiers into their strategy to attract startups and individual developers, aiming for their conversion into paying customers as they scale.

  • AWS offers a generous free tier with limited usage of specific services.
  • Azure provides a more targeted free tier with specific services tailored to developers.

2. Partnership and Collaboration

Partnerships and collaborations play a pivotal role in enhancing the offerings of cloud platforms. 

For AWS and Azure, aligning with enterprises and the open-source community is instrumental in appealing to a diverse user base.

Enterprise Integration

Azure
  • Leverages deep ties with the Microsoft product suite to provide a cohesive experience for enterprises entrenched in the Microsoft ecosystem.
  • Collaborates with enterprise solution providers to expand market penetration and cater to specific industry needs.

Open Source Collaboration

AWS
  • Strategically aligns itself with the open-source community, fostering partnerships that enhance its offerings and appeal to various developers.
  • Actively participates in open-source projects and integrates open-source technologies into its platform.

3. Service Reliability and Uptime

Service reliability and uptime are critical considerations when choosing a cloud provider. Both AWS and Azure prioritize these factors, employing strategies such as comprehensive Service Level Agreements (SLAs) and a wide distribution of data centers.

AWS

  • Boasts a global data center network with a proven track record of uptime and reliability.
  • Offers comprehensive SLAs that guarantee specific uptime percentages.

Azure

  • Rapidly expanding its global data center presence to ensure consistent service delivery and low latency.
  • Provides SLAs with uptime guarantees comparable to AWS.

4. Developer Ecosystem and Community Support

The developer ecosystem and community support are pivotal in determining cloud platform success and adoption rates. 

AWS and Azure have invested significantly in creating tools, resources, and communities to cater to the diverse needs of developers.

Developer Tools

AWS
  • Offers a diverse array of developer tools, catering to a broad spectrum of languages, frameworks, and development methodologies.
  • Provides extensive documentation, tutorials, and sample code to support developers.
Azure
  • Leverages Microsoft’s suite of developer tools, notably Visual Studio and .NET, positioning it as a go-to choice for developers within the Microsoft ecosystem.
  • Offers a growing collection of open-source tools and integrations.

Community Engagement

AWS
  • Being in the market longer, AWS boasts a larger and more active community of developers and cloud professionals.
  • Hosts numerous conferences, meetups, and online forums to foster collaboration and knowledge sharing.
Azure
  • While younger, Azure is rapidly growing its community with Microsoft’s substantial investments in community engagement and developer outreach.
  • Organizes regular hackathons, training sessions, and online events to attract and engage developers.

Certifications and Training

Certification programs serve as benchmarks for professional competency and bolster the platform’s credibility and adoption.

AWS
  • Offers a comprehensive suite of certifications ranging from foundational to advanced levels.
  • Provides extensive training resources and exam preparation materials to support certification aspirants.
Azure
  • Offers a range of certifications aligned with its core services and solutions.
  • Collaborates with training partners to deliver certification courses and workshops.

Why Businesses Are Moving to Cloud 

According to a Verizon survey, 77% of companies believe that using cloud technology gives them an advantage over rivals.

Businesses opt for cloud migration due to various factors, each contributing to a unique decision. 

Here are concise explanations for key motivations:

  • End-of-life Events: When vendors announce end-of-life events for hardware or software, it prompts businesses to consider cloud solutions, enabling them to decommission outdated resources and avoid security risks.
  • Business Acquisitions: Merging companies often face challenges with incompatible technologies. Cloud migration ensures a seamless transition, offering a consistent solution adaptable to new geographies.
  • Contract Renewals: Periodic renewals with data centers and providers prompt businesses to reassess deployment strategies, providing an opportunity to shift to cost-effective cloud solutions.
  • Compliance: Industries like finance and healthcare benefit from already compliant cloud services, relieving businesses of the burden of managing evolving compliance regulations.
  • Security Risks: Facing increasing cyber threats, businesses find ready-made solutions in the public cloud, offering robust tools and resources to mitigate risks effectively.
  • Capacity Requirements: Cloud flexibility addresses challenges in hardware utilization during growth or seasonal shifts, allowing businesses to scale resources and reduce costs through a pay-as-you-go model.
  • Refresh Cycles: Transitioning to the cloud during software or hardware refresh cycles proves cost-effective compared to on-premises upgrades, offering savings through SaaS subscriptions or lift-and-shift approaches.

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The AWS vs Azure

Both AWS and Azure have established themselves in the ever-expanding world of cloud services, drawing in a wide range of companies. 

Now, let’s explore the world of well-known businesses that fit each platform.

AWS Champions

Here, I have pointed out some renowned companies that have been using AWS for years:

  • Netflix: Streaming giant leveraging AWS for scalability and seamless content delivery.
  • Airbnb: The global hospitality platform relies on AWS for robust and reliable cloud infrastructure.
  • Unilever: The consumer goods powerhouse finds strength in AWS for its data-driven strategies and operations.
  • BMW: The automotive giant trusts AWS for innovation and data management in its digital transformation journey.
  • Samsung: A technology titan using AWS for various services, from storage to machine learning applications.

Azure Advocates

The following companies are popular worldwide for using Azure:

  • Johnson Controls: This multinational conglomerate partners with Azure for smart building solutions and IoT innovations.
  • Polycom: The communication technology leader uses Azure for collaborative and secure cloud communications.
  • Fujifilm: The imaging and photography pioneer harnesses Azure for data storage, analytics, and advanced imaging solutions.
  • HP: A technology stalwart, HP relies on Azure for its cloud computing needs, enhancing customer experiences.
  • Apple: A tech giant utilizing Azure for various cloud services, contributing to its seamless ecosystem.

In this diverse landscape, companies strategically align with AWS or Azure based on their unique requirements, contributing to the rich tapestry of cloud computing adoption.

AWS vs. Azure: Pros and Cons

In cloud computing, the decision between Amazon Web Services (AWS) and Microsoft Azure is pivotal for businesses worldwide. 

I will now dissect the pros and cons of these industry giants to empower your decision-making process.

AWS: Pros and Cons

Let’s point out the strengths and considerations of Amazon Web Services (AWS).

Pros

  • Comprehensive Service Portfolio: AWS boasts a diverse range of services, encompassing computing power, storage, databases, analytics, and machine learning.
  • Scalability: Businesses benefit from the flexibility to scale resources up or down based on fluctuating demand, offering cost-efficiency.
  • Global Infrastructure: With data centers strategically placed in multiple regions worldwide, AWS provides a robust global infrastructure.

Cons

  • Dev/Enterprise Support Costs: Notable software providers may incur charges for their applications on AWS Dev/Enterprise support.
  • Learning Curve: The extensive array of services and options can be overwhelming for newcomers to the AWS ecosystem.
  • Hybrid Cloud Limitations: AWS provides limited alternatives for organizations seeking comprehensive hybrid cloud solutions.

Microsoft Azure: Pros and Cons

Now, let’s explore the strengths and considerations associated with Microsoft Azure.

Pros

  • Seamless Integration with Microsoft Services: Azure facilitates the streamlined integration and migration of existing Microsoft services.
  • AI and Analytics: Offering an extensive suite of AI, machine learning, and analytics services, Azure empowers businesses with advanced capabilities.
  • Cost-Effectiveness: Azure stands out for its cost-effective options, providing competitive alternatives to industry leaders like AWS and GCP.
  • Hybrid Cloud Support: Azure supports hybrid cloud strategies, catering to businesses with diverse infrastructure needs.

Cons

  • Limited Service Choices: Compared to AWS, Azure may present a more constrained selection of services.
  • Business-Centric Focus: Azure’s primary orientation towards business customers might pose limitations for certain use cases.

As we weigh these factors, let’s navigate the complexities and nuances of AWS and Azure, ensuring you make an informed choice tailored to your organization’s unique requirements.

AWS vs. Azure: Which One is Better for Your Business?

In the perpetual debate of AWS vs. Azure, determining the superior cloud giant requires meticulously examining key facets. 

I have listed here the considerations that shed light on which platform might be better suited for your business needs.

  • Establishment: With a five-year head start, AWS has a significant advantage that cements its status as an industry leader.
  • Zones of Availability: With its vast network of availability zones and regions, AWS leads the way in providing reliable worldwide coverage.
  • Market Parts: With about one-third of the market, AWS continues to dominate, demonstrating broad acceptance and confidence.
  • Rate of Growth: Although AWS holds the largest market share, Azure is growing significantly and has a bright future.
  • User Group: AWS and Azure are in a competitive tie with respect to user base because they both have well-known customers.
  • Services: With its wide array of services, unmatched depth, and versatility, AWS stands out as the leader.
  • Integration: Azure is distinguished by its smooth integration capabilities, especially in open-source and extensively utilized on-premise systems. It also complements Microsoft technologies that are commonly employed in many enterprises.
  • Models of Pricing: The choice becomes more complicated because Azure charges by the minute, but AWS charges by the second with a minimum of 60 seconds. Budgetary constraints and particular business requirements may influence the decision.

AWS seems to be leading the way in the cloud dilemma thus far, with its well-established brand, extensive service portfolio, and market leadership. 

Nevertheless, the decision-making process gains appealing features from Azure’s remarkable expansion and integration capabilities. 

The best option between AWS and Azure is your organization’s specific needs and strategic goals.

AWS and Azure Tools for Your Business

In enterprise cloud servers, both AWS and Azure offer a robust suite of tools designed to empower businesses with advanced functionalities. 

Let’s identify the distinctive tools provided by AWS and Azure:

AWS Tools

You can utilize the following AWS tools to elevate your business:

1. SageMaker for AI Empowerment

AWS takes the lead in harnessing Artificial Intelligence (AI) capabilities through SageMaker. This tool allows enterprises to train employees and execute machine learning models, bringing cutting-edge AI solutions to the fingertips of businesses.

2. Lambda for Serverless Computing

AWS provides the Lambda serverless computing environment, enabling users to run code without the need for provisioning or managing servers. This serverless approach allows for seamless scalability and cost efficiency, making it a pivotal tool for modern application development.

3. Serverless Repository for App Deployment

AWS facilitates app deployment through its Serverless Repository, allowing users to share and deploy serverless applications effortlessly. This adds a layer of flexibility and customization to the development and deployment process.

4. IoT Integration for Comprehensive Solutions

Addressing the needs of the Internet of Things (IoT), AWS allows users to integrate various IoT enterprise solutions. This empowers businesses to build and deploy scalable and secure IoT applications tailored to their specific requirements.

Azure Tools

Let’s take a look at the Azure tools you can take advantage of:

1. Cognitive Services and AI Enhancement

Azure stands out with its Cognitive Services, offering a set of API-based tools that seamlessly integrate Microsoft software and business applications. This empowers businesses to enhance their applications with AI capabilities, fostering innovation and efficiency.

2. Functions for Serverless Orchestration

Azure introduces Functions, it’s serverless computing solution that orchestrates and manages complex workloads driven by events. This allows businesses to build scalable applications without the hassle of infrastructure management.

3. Azure IoT Edge for IoT Administration

In the IoT domain, Azure provides IoT Edge, a tool designed for administration and business analytics. This tool empowers businesses to extend cloud intelligence to edge devices, enabling real-time processing and analysis of IoT data.

These tools from AWS and Azure collectively contribute to a comprehensive ecosystem, allowing businesses to leverage advanced technologies, streamline operations, and stay at the forefront of innovation in the ever-evolving landscape of enterprise cloud computing.

Factors to Consider in Choosing between AWS and Azure

In the perpetual debate of AWS vs. Azure, determining the superior cloud giant requires meticulously examining key facets. 

I have listed here the considerations that shed light on which platform might be better suited for your business needs.

  • Establishment: With a five-year head start, AWS has a significant advantage that cements its status as an industry leader.
  • Zones of Availability: With its vast network of availability zones and regions, AWS leads the way in providing reliable worldwide coverage.
  • Market Parts: With about one-third of the market, AWS continues to dominate, demonstrating broad acceptance and confidence.
  • Rate of Growth: Although AWS holds the largest market share, Azure is growing significantly and has a bright future.
  • User Group: AWS and Azure are in a competitive tie with respect to user base because they both have well-known customers.
  • Services: With its wide array of services, unmatched depth, and versatility, AWS stands out as the leader.
  • Integration: Azure is distinguished by its smooth integration capabilities, especially in open-source and extensively utilized on-premise systems. It also complements Microsoft technologies that are commonly employed in many enterprises.
  • Models of Pricing: The choice becomes more complicated because Azure charges by the minute, but AWS charges by the second with a minimum of 60 seconds. 

AWS seems to be leading the way in the cloud dilemma thus far, with to its well-established brand, extensive service portfolio, and market leadership. 

Nevertheless, the decision-making process gains appealing features from Azure’s remarkable expansion and integration capabilities. 

The best option between AWS and Azure is your organization’s specific needs and strategic goals.

Why Opt for Core Devs as Your Cloud Services Partner?

Have you ever wondered what sets a remarkable cloud services provider apart?

Core Devs has the answers, offering a host of reasons why your organization should make us the cornerstone of its cloud strategy.

Strategic Integration

Forge a strategic alliance with Core Devs, where we seamlessly integrate cloud solutions into your existing infrastructure. 

Our collaborative approach ensures a tailored integration that aligns with your business objectives, fostering a unified ecosystem where your operations thrive.

Fortified Security

Security is not just a feature; it’s our commitment. Core Devs goes beyond industry standards, implementing cutting-edge security protocols to safeguard your data and applications. 

Our comprehensive measures, including advanced encryption and threat detection, provide a robust shield against the ever-evolving landscape of cyber threats.

Dynamic Scalability

Empower your organization with unparalleled scalability and flexibility. Core Devs’ cloud services dynamically adapt to the ebb and flow of your business needs, allowing you to scale resources effortlessly. 

Stay agile in a competitive landscape with an infrastructure that evolves with your growth ambitions.

Intelligent Insights

Unlock the power of AI-driven insights with Core Devs. Our advanced analytics tools transform raw data into actionable intelligence. 

Armed with real-time analytics, machine learning models, and predictive algorithms, your business gains a competitive edge, making informed decisions a cornerstone of your strategy.

User-Centric Design

Experience a cloud interface designed with your team in mind. Core Devs prioritizes user-centric design, offering intuitive interfaces that simplify complex cloud operations. 

Enhance productivity and efficiency with a platform prioritizing user comfort and operational ease.

Global Reach, Local Assurance

Opt for Core Devs for a global footprint with unwavering performance. Our strategically positioned data centers ensure low-latency access worldwide, providing reliable and high-performance cloud infrastructure. 

Connect confidently, knowing that Core Devs delivers a consistent experience across geographical boundaries.

Dedicated Support

Rely on Core Devs’ dedicated support team, which is available 24/7 to address your queries and ensure uninterrupted operations. 

Our responsive support guarantees timely assistance, minimizing downtime and maximizing the efficiency of your cloud services.

Elevate your cloud experience with Core Devs – where your success in the digital era becomes our shared journey.

The best cloud strategy

Final Thoughts

In the showdown of AWS vs. Azure market share, it’s evident that these two cloud giants are continually shaping the digital frontier. 

The battle for supremacy in cloud computing is dynamic, with AWS and Azure showcasing their strengths uniquely. Picking between them depends on your needs. 

Your decision should align with your specific requirements, scalability goals, and long-term strategies.

So, is AWS the go-to for reliability, or is Azure’s integration your preference? Share your insights and experiences with Core Devs. Your perspective could be the guiding light for others navigating this decision. 

Keep an eye out for updates as AWS and Azure shape the future of digital infrastructure.

Frequently Asked Questions

AWS has gained a larger market share than Azure despite offering similar services. This can be attributed to several factors, including AWS’s earlier entry into the cloud computing market, its wider range of services, and its stronger global reach.

2. What is the difference between Azure and AWS?

Both Azure and AWS are leading cloud computing platforms that offer a wide range of services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). 

However, there are some key differences between the two platforms.

  • Pricing: AWS generally offers more competitive pricing than Azure, especially for long-term workloads.
  • Services: AWS has a wider range of services than Azure, including more specialized services for machine learning, data analytics, and networking.
  • Global reach: AWS has a larger global footprint than Azure, with more data centers in more regions.

3. Is Azure the same as AWS?

No, Azure and AWS are two different cloud computing platforms. They are both owned by different companies (Microsoft and Amazon, respectively) and have different strengths and weaknesses.

4. Is AWS better than Azure?

There is no clear answer to this question, as both AWS and Azure have their own strengths and weaknesses. The best platform for a particular organization will depend on its specific needs and requirements.

5. How do I choose between AWS and Azure?

Here are some factors to consider when choosing between AWS and Azure:

  • Your specific needs and requirements
  • Your budget
  • Your existing IT infrastructure
  • Your experience with cloud computing

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