As another year passes, the cloud computing platform giants begin another lap in their race to the top. With a 33% market share, Amazon Web Services (AWS) owns a significant cloud market share by a considerable margin, followed closely by Microsoft Azure at 20%.
However, as Microsoft Azure’s market share has doubled in the last five years, it is conceivable that it will surpass AWS in 2025—at least in some areas. Microsoft products continue to make Azure a more attractive cloud solution for businesses, using its decades-long market expertise to support a broader range of use cases.
Below are the top areas that will make businesses choose Microsoft Azure cloud over AWS in 2025 and how companies can influence who leads the race in the cloud computing market this year.
The Role of Serverless Computing in the Current Cloud Landscape
Serverless computing is an emerging cloud computing execution model where the cloud provider manages the server infrastructure, allowing DevOps to focus solely on writing code. Popular models include Infrastructure as a Service (IaaS) and Platform as a Service (PaaS).
AWS (with Lambda) and Azure (with Functions) offer serverless cloud infrastructure management, giving businesses more choice over deployment partners. Serverless computing provides benefits such as reduced operational overhead, automatic scaling, and cost savings for certain workloads.
Addressing the Concerns Around Data Privacy and Sovereignty
Data privacy and sovereignty are critical concerns for many organizations, especially those operating in regulated industries, such as finance or healthcare, or across international markets. Cloud providers are responding by:
- Expanding their network of data centers to more geographic locations
- Offering region-specific data storage options
- Implementing advanced encryption and security measures
- Providing compliance certifications for various international standards
These measures help ensure that cloud businesses can meet local data residency requirements and maintain control over private information.
AWS vs. Azure: Key Considerations
When choosing between AWS and Microsoft Azure, understanding the key considerations can help you make an informed decision for your business. Each platform offers unique strengths, and by evaluating these aspects, you can determine which cloud provider best aligns with your organization's needs and goals.
Price and Cost Savings
Cost is undoubtedly one of the primary factors businesses consider when choosing a cloud solution. Cost-effective tools are even more crucial in 2024 since enterprises are bracing for economic headwinds. AWS offers various services that can help businesses substantially reduce costs; however, Microsoft Azure offers more competitive pricing options.
For example, “Azure Reserved Instances” provides an additional 10-20% savings on regular virtual machine (VM) instances. Plus, it includes per-minute billing for customers who only need short-term resources.
Flexibility
Both AWS and Azure offer flexibility when it comes to deploying services and applications across different environments. Azure provides a larger selection of pre-built solutions than AWS services, meaning customers don’t have to spend time building out new solutions from scratch or manually configuring app settings each time they want to deploy.
That makes it significantly easier for companies to get up and running without additional hassle or hidden costs. Some of Azure’s most in-demand solutions include Azure Development and Testing, Azure DevOps, Azure Mobile, and Azure Application and Data Modernization.
Security
AWS and Azure offer a suite of high-grade security features, such as identity and access management systems, encryption technologies, comprehensive threat detection solutions, and decisive measures against potential DDoS attacks.
But Azure's ultimate competitive edge is its cross-platform capability to promptly synchronize with third-party security vendors, enabling businesses to bolster their defenses without investing in additional efforts or services. This merging benefit infers organizations with multiple levels of secure data no matter their size, area of business operation, or annual turnover.
As we look ahead to 2025, it’s clear that Amazon Web Services and Microsoft Azure will remain two of the biggest cloud giants. While AWS holds a larger market share, Microsoft Azure is quickly gaining ground due to its competitive pricing options, flexible solutions, and advanced security features.
Trusted Tech Team is an accredited Microsoft CSP Direct Bill Partner, carrying multiple Solutions Partner designations and the now-legacy Microsoft Gold Partner competency. Based in Irvine, California, we report trends affecting IT pros everywhere.
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FAQs
How does a multi-cloud strategy compare to using a single cloud service provider?
Many businesses are adopting a multi-cloud strategy. A multi-cloud strategy involves using services from multiple cloud offerings, including public cloud services, which have benefits such as avoiding vendor lock-in, optimizing costs, and leveraging unique features from different providers. However, it also comes with challenges like increased complexity in management and potential integration issues.
What role does artificial intelligence play in modern cloud computing services?
Artificial intelligence (AI) is becoming increasingly integral to global cloud computing services. Both AWS and Azure, as well as other providers like Google Cloud Platform (GCP), offer AI and machine learning services.
These include pre-built AI models, tools for developing custom AI solutions, and AI-powered big data analytics. Intelligent cloud-based AI services enable businesses to implement intelligent features in their applications without needing to build and maintain complex AI infrastructure themselves.
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