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Analysts think that Microsoft will be able to take a significant share of the cloud market from Amazon in 2020.

microsoft will take cloud market from amazon

Microsoft's cloud business expects significant growth in 2020, although the company has every chance of taking a significant market share from Amazon Web Services. These forecasts were made by analysts in a forecast published by Business Insider.

One of the key reasons for the expected growth of Microsoft’s cloud business is the professional team of top managers of the cloud division. In particular, as part of its cloud strategy, Microsoft will strengthen the aggressive trend for mergers and acquisitions, and by the end of 2020 will conclude a number of major transactions to expand the list of its cloud products, according to Wedbush Securities.

This approach will allow Microsoft to further narrow the gap between AWS in the cloud market. To a large extent, Microsoft already proved to be a serious player in the cloud market in the second half of 2019, when Pentagon chose Microsoft for the construction of the JEDI (Joint Enterprise Defense Infrastructure Cloud) cloud infrastructure for storing and processing data from the U.S. Department of Defense, although Amazon originally counted on this contract.

The popularity of Azure cloud technology, growing in the wake of numerous deployments, is very likely to enable Microsoft to bypass Amazon in the cloud services market by the end of 2020, Wedbush Securities believes.

According to analysts, the Microsoft Azure platform will have more chances than Amazon Web Services to win new US Government cloud tenders. According to Wedbush Securities, the US government’s spending on cloud computing in the next decade will be about $100 billion.

It is the JEDI deal that will provide Microsoft with the foundation to win future government contracts, analysts say. In 2020, as part of the digital transformation of US agencies, about $ 4-5 billion will be spent on switching to clouds in just the district of Columbia.

Another Microsoft’s strategic weapon against the expansion of Amazon Web Services will also be the Microsoft Power Platform business toolkit for automated application development and data analysis without the need to write any code. As the boundaries between business and development blur, the Microsoft Power Platform can play a decisive role in building applications with linear business goals, analysts at Evercore ISI said. They are expecting that the Power Platform will be able to provide Microsoft with revenues of up to $650M by 2020, and up to $1Bn by 2022.

Gartner analysts believe that the growth of Microsoft Azure will ensure the rapid growth of a network of large partners. For example, in November, Salesforce chose Microsoft Azure as a public cloud to support its Marketing Cloud platform for marketers. In addition to the deal with Salesforce, Microsoft recently announced the expansion of cooperation with large cloud partners such as Oracle and SAP.

According to Gartner’s Global Market Infrastructure as a Service (IaaS) report published in July 2019, the AWS platform was a leader in the global public cloud services market by a significant margin - it accounted for 47.8% of the market, while Microsoft only has 15.5%.


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