The battle for the public cloud is heating up in India, as Microsoft and Amazon fight it out for dominance in one of the fastest growing markets in the world. Public clouds allow companies to buy computing and storage power without needing to own data centres.
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Amazon vs microsoft erupts in the cloud for dominance in the online market
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Amazon vs Microsoft erupts in the cloud for dominance in the online market
The battle for the public cloud is heating up in India, as Microsoft and Amazon fight it out for
dominance in one of the fastest growing markets in the world. Public clouds allow companies to
buy computing and storage power without needing to own data centres.
Also called infrastructure-asa-service, the business was created by ecommerce company
Amazon. Its Amazon Web Services division is now on track to $10 billion in revenue this year.
Microsoft, which was a later entrant to the space with Azure offering, has said its public cloud
revenue doubled this year but has not given out its revenue contribution. India is the sleeping
giant in the public cloud space. Gartner expects public cloud services in the country to reach
$1.26 billion this year and it is growing at over 30%. India would provide a considerable edge to
whichever company corners a lead in the market.
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The leading cloud services providers conquering most of the revenue are Amazon Web Services
(AWS), Microsoft (Azure), Google Inc, IBM, and Salesforce.com. In recent years, more and
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more businesses have move applications out of their data centres to cloud in a bid to cut costs
and increase efficiency. Services run in the cloud benefits from integration of systems and data.
The cloud services market has a huge scope of growth and investments in cloud are expected to
touch $2 billion mark by 2020. Cloud is also a key element for developing Internet of Things
(IoT) and in increasing the use of mobility.
Microsoft was the first entrant in India to bring cloud solutions from its data centres in Mumbai,
Pune and Chennai. It has a complete portfolio of cloud services that includes Microsoft Azure,
Office 365 and Dynamics CRM Online that use tools such as Microsoft and its partners use tools
such as Azure Machine Learning, Azure Analytics, Power BI (business intelligence). Verticals
like booming e-commerce sector and startups are the patrons of these services.
However in India, Microsoft’s Azure face-off Amazon’s AWS, a pioneer of cloud concept across
the world. AWS which features clients such as Netflix has been a dominant player in the cloud
sector since the last decade. Its revenue for this year is expected to hit $10 billion and counts
about 75,000 Indian start-ups among its users. Azure, which is more directly comparable to
Amazon's cloud services, was last year estimated by Deutsche Bank to be as little as one-tenth of
that from AWS.
As for Google, Eric Schmidt, executive chairman of Alphabet says, "The space (cloud) is very
large, very vast and no one is covering all of it." Even though Azure is smaller in front of
Azure’s dominance, it is making immense growth. Its Windows 10 and Cortana are really
integrating e-commerce capabilities like Snapdeal and Paytm in the country.
Amazon leads the race by a long way but its competitors have got the power to thrust billions of
dollars and heavy investments are needed to set up network of gigantic data centres across the
globe. For entities which already use Microsoft for technology and developer skills, Azure will
continue to be a strong bet.
Read more about: Cloud Computing & Its impact on the industry