Businesses’ growing appetite for cloud computing services has driven a dramatic rise in earnings for Amazon Web Services and Microsoft’s Azure division.
Sales of Azure, Microsoft’s flagship cloud product, rose by 93 per cent over the last quarter, giving the software giant a 14 per cent share of the $15.6bn cloud market.
AWS, the industry leader, now holds a 32 per cent share of the market after beating analysts’ expectations to post a 49 per cent rise in sales.
Amazon CEO Jeff Bezos said AWS had “the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down”.
“As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day,” he added.
A survey published in March indicated that more than half of IT leaders fear that cloud is less secure than on-premises services. But it is regarded as offering businesses a cheaper and more flexible way to store their information.
Commenting on the earnings reports, Cloudreach’s US chief Tom Ray said it was clear that the market is continuing to grow quickly. “Large businesses are increasing, not only their spend with the CSPs, but also their willingness to use more than one service provider,” he said. “In the next 12 months, we will see again more growth and maturity in the market, it shows no sign of slowing.”