For quite some time, Amazon.com, Inc. (NASDAQ:AMZN) has been the main player in the cloud computing market. However, there is growing competition in the market from the likes of Microsoft Corporation (NASDAQ:MSFT) that want a piece of the $266 billion cloud market.
Amazon wary of growing competition in the cloud business
Currently, Amazon faces pressure from Microsoft in the battle to control the US cloud computing market to offer remote computing power. It is expected that the rivalry will dominate the tech industry in the next decade, considering the cloud computing market has been growing exceptionally in recent times. According to the research firm, Gartner Inc.’s 2020 estimate, the market has grown over 246% in the just-ended decade.
Amazon has dominated the space for long, being the main provider of data storage for large corporations. But they are now feeling the pressure for the competition from Microsoft as revealed by Amazon Web Services Chief executive Andy Jassy. Jassy said that rivals are not prioritizing what matters to customers as most often, they are copycats. He added that most rivals are turning out to be good checkbox heroes where they look at what AWS has, and they start saying they also have it.
Microsoft emerging as a competitor to Amazon in the cloud business
Amazon is becoming anxious about its rivals, especially Microsoft. For instance, last year, Microsoft beat Amazon to the mega Pentagon cloud computing contract that is valued at around $10 billion in the next ten years, but Amazon is contesting it in court.
Microsoft has been aggressive in luring customers and potential clients to its Azure cloud computing business. They have been telling potential customers that by signing up for their cloud service, they will not be putting valuable customer information into servers of a possible competitor. Microsoft Azure’s corporate VP indicated that the company is not about hosting customer data and competing with them.
According to Gartner, Amazon’s market share in the cloud space has been waning, whereas that of Microsoft is increasing. However, Amazon remains the undisputed leader in the space.