Microsoft Hooks Small Companies to Challenge AWS in Cloud

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Big tech names in the cloud market are toiling over cloud computing services as they bet on tech startup companies. The not-so-new dominant name is Microsoft Corp., gaining a new tactic of tapping smaller firms to onboard on its Azure cloud.

The cloud computing battleground is between Amazon Web Services (AWS) and the tech giant Microsoft, capitalizing on deploying IoT devices to the enterprise network edge. Known as ‘edge computing’, the service requires a data center to provide reliability and performance.

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What Microsoft and Amazon are doing is forming strategic partnerships for early-stage implementation. Edge computing is a more sophisticated service, providing businesses with a range of workload solutions to protect data, and at the same time, ensure stable performance.

Microsoft to Challenge AWS in Cloud

On Monday, tech giant Microsoft announced its recent partnership with San Francisco-based email security firm, Abnormal Security Corp.

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The partnership involves moving Abnormal Security Corp.’s software onto Microsoft. In return, the tech giant will sell its services to its enterprise clients. The multinational tech company claims that this partnership is a first for such ‘arrangements.’

Jump in Cloud Revenue

On Sept. 14, Microsoft also published its Commercial Cloud Business revenue, indicating a massive increase of 30 percent in the fourth quarter of the year. This simply means Microsoft is leading the cloud market, ahead of big competitors like IBM, Google, and AWS.

According to StockApps, Microsoft’s revenue is more than that of IBM and Google combined. In figures, the company’s revenue hit $14.3 billion, while AWS accumulates $10.8 billion, IBM with $6.3 billion, and Google with $3 billion.

The intelligent cloud revenue comprises of the $13.37 billion of the total revenue, which is pretty huge. It indicates an increase of 17 percent of YoY, and surpassed analysts’ expectations of $13.11 billion.

Pandemic

Microsoft leveled up its delivery for the Cloud Communications market, Workforce Productivity, and Business Processes Tools, which are included in the Office and Dynamics services. Now, this specific area is up by 6 percent in the fourth quarter, showcasing an increasing demand for such tools.

Overall, Office and Dynamics’ revenue increased by 13 percent, to $38 billion. The work from home setup greatly helped Microsoft to leverage digital workforce services that help businesses operating remotely.

The biggest achiever for the company is none other than Microsoft Azure, with shares swelling to 47 percent. However, this percentage still needs improvement as last quarter’s data reached a 59 percent increase.

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