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Sunday, December 27, 2015

A 'street battle' is brewing between Amazon and Microsoft

Amazon Web Services is the leader in cloud computing, but Wall Street believes is about to face much stronger competition from the platform cloud of Microsoft, Azure, next year.
In a note published Tuesday, the market research firm FBR Capital Markets predicted Azure path to reach an annual run rate over $ 8,000 million in 2016. That's about the same rate as this year AWS Run.

"We continue to believe 2016 will be a" code of the street fighting 206 in the area of ​​the cloud with Microsoft strongly better placed than the seller to compete with AWS cloud for business forward to the next few years, "FBR wrote in the note.

The report said that the decision by Microsoft CEO Satya Nadella put much more emphasis on the cloud begins to bear fruit, and Microsoft already large footprint in the business gives you a big advantage over competitors who try to AWS.

"We believe Microsoft Azure and have a long history of cross its massive base of corporate customers with a broad platform for cloud offerings sales in the coming years," he said. "We believe that better days are coming cloud given our positive controls in the countryside around the strong absorption of key cloud products (such as Office 365, Blue) position in 2016."

Microsoft's decision to expand sales to existing customers is a common tactic in the company, but certainly something is in a better position to do so, as it has a long history of dealing with large companies and already share huge market built from the pre-cloud era.

Indeed, Deutsche Bank said in a report last month that the call of the land and expand the strategy was the focal point of Microsoft Azure in sales so far.

"According to Microsoft, the" land "immediate objective is to promote the Riviera penetration, so that each client uses Microsoft in the Riviera things," he wrote. "Microsoft is in a much earlier stage to reach the" Expand "part of the sales strategy, but has had some success, claiming that some customers are now well into the" millions of dollars "level of spending years Azure ".

But Deutsche Bank also noted that Azure is perceived as a "Microsoft-centric" solution, which is "less open" as AWS. Some people cited Azure he described as a "boutique" Microsoft, calling AWS more "generic platform."

Regardless, the Deutsche Bank accepts that next year will be the year Azure really accelerates your game and became a formidable market leader AWS rival.

"While the consensus is that our controls AWS is able to maintain its overwhelming advantage, we are optimistic about Microsoft rotating cloud, blue Azure adoption and the capacity for much of Microsoft's customer base," he wrote. "We see no reason why this will not continue in 2016."

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