Microsoft Azure is gaining ground, but Amazon Web Services (AWS) from Amazon still maintains its leadership position in the cloud services ecosystem.
Analysts at Jefferies report that while Microsoft Azure is gaining momentum in the cloud services market, it still remains a second player behind Amazon Web Services (AWS). According to a survey of 40 US CIOs, both platforms were identified as being well positioned to attract additional investment over the next two years, with 80% of CIOs planning to increase cloud spending by 2024. Azure received positive feedback, with a larger proportion of CIOs planning significantly higher investments in the next 24 months. Jefferies concludes that AWS maintains a strong market position due to its positioning, broad product portfolio, solid partner network and improving position in artificial intelligence (AI). Regarding AWS, 80% of CIOs expect an increase in cloud investment in 2024, only 3% expect a decrease, and 18% expect no change. Analysts predict an acceleration in cloud services investment in 2024 as companies seek to renew their digital transformation. Yet, interestingly, artificial intelligence and machine learning (ML) are not the main factors driving increased investment in cloud services. Instead, customers cite compute and storage as the top reasons for increased investment in AWS and Azure.
Given the growing interest in Microsoft Azure, what do you think will be the trend in cloud services investment in 2024?