Goldman Sachs: Microsoft is gradually winning the battle for cloud services

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A recent survey by Goldman Sachs shows that Microsoft is still the most popular public cloud service provider despite Amazon’s overall revenue lead across the market. And Microsoft’s cloud market share will continue to grow, and further cloud growth will also boost Microsoft’s stock price.

Take a look at Goldman Sachs’ report first. This is based on an IT spending survey of 100 IT executives from Global 2000 companies, conducted in June and December each year.

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  • Of the 100 executives interviewed, 56 are using Azure for cloud infrastructure and 48 are using AWS.
  • According to survey data, since December 2017, Microsoft’s leadership in the integrated areas of IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) has been increasing.
  • Within three years, more respondents expect their company to use Azure than any other cloud.
  • Of the companies surveyed, as of December, approximately 23% of IT workloads were on the public cloud, up from 19% in June, and this proportion is expected to reach 43% within three years.

In the third quarter, AWS generated $ 9 billion in revenue. Microsoft did not announce Azure’s quarterly revenue, but analysts at the securities firm gave a buy rating to Microsoft, and Analysts estimated that Azure’s revenue for the quarter was approximately $ 4.33 billion.

Forbes magazine added that the Pentagon had previously signed a $50 billion contract and that Microsoft had beaten Amazon in this transaction.

In addition, Google should not be forgotten. Thirty executives in the survey still expressed their expectation to use Google’s cloud services in the next three years. Analysts noted that the growth potential of its cloud computing business exceeded expectations. Next, Google may acquire another public cloud vendor to catch up with Microsoft and Amazon.

Source: CNBC

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