Microsoft Corporation (MSFT) Vs Amazon.com, Inc. (AMZN): Battle For $14.5 Billion Cloud Market Heating Up

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In an article on Business Week, it was reported that Microsoft Corporation (NASDAQ:MSFT) is slowly but steadily making its way in the Enterprise with its promising Cloud platform Windows Azure. The article quoted K2.com, a software company which has currently ditched Amazon.com, Inc. (NASDAQ:AMZN) web services for Microsoft Corporation (NASDAQ:MSFT). The reasons behind this migration are the complete control, customization, app development and cross-platform support Microsoft Corporation (NASDAQ:MSFT) Cloud gives. Amazon.com, Inc. (NASDAQ:AMZN) has an ecosystem problem and app development is difficult on AWS in terms of customization. Still, K2 has around 5% of its Cloud infrastructure signed up with Amazon.com, Inc. (NASDAQ:AMZN) web services because Microsoft is a bit ‘bumpy’, according to the company executive.

According to a survey, Amazon.com, Inc. (NASDAQ:AMZN) has around 27% share in the $14.5 billion Cloud infrastructure market as of the third quarter this year. This share has declined by one percent whereas Microsoft Corporation (NASDAQ:MSFT) Cloud market share has went up by 3% to touch around 10% as of third quarter. Companies are moving their on-premise systems and private Cloud infrastructure to Windows Azure Cloud because of security, customization and control Microsoft Corporation (NASDAQ:MSFT) platform gives.

Microsoft Corporation (NASDAQ:MSFT) Windows Azure Cloud platform growth rate is around 136%, which is pretty impressive. Contrary to this, Amazon.com, Inc. (NASDAQ:AMZN) revenue from Cloud services is around $1.34 but the company didn’t tell its growth rate and denied to detail the exact areas from which the revenue comes from.

40% of the Microsoft Corporation (NASDAQ:MSFT) Windows Azure customers are startups.  According to the sales team of Microsoft, the company signs up more than 10,000 users to Windows Azure each week. On the other hand, Amazon.com, Inc. (NASDAQ:AMZN) Web services are clinging to the same old Enterprise customers without any innovation. But still, Azure has a long way to go to catch up Amazon.

Among the shareholders of Amazon.com, Inc. (NASDAQ:AMZN) is Fisher Asset Management, led by Ken Fisher

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