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Azure and That Dear Old Crinkle of Green: Bloomberg

Suddenly people are talking about Azure being in the running against AWS, with 20% of the cloud market to Amazon’s 71%

In the last 12 months annual revenues for Azure have topped a billion dollars according to Curt Anderson, CFO of Microsoft’s Server and Tools unit where Azure is housed.

It’s the first time the Microsoft cloud has hit this storied height and suddenly people are talking about it being in the running against Amazon Web Services, which is believed to have done $1.8 billion last year on its eventual way to $20 billion sometime before the decade ends.

Microsoft needs Azure to click in case the bottom continues to fall out of the Windows OS market.

Forrester told Bloomberg that Azure has roughly 20% of the cloud market to Amazon’s 71%. And it thinks Azure may have 35% in the next year, doubling annually from here on out.


Microsoft's Ray Ozzie first talked Azure in 2008, calling it (at the PDC) "the Cloud OS"

It said, “Microsoft probably has more net new growth opportunity sitting in front of them than probably anyone in the market.”

Azure sales include the cloud software Microsoft is providing resellers.

They’re up 48% in the past six months, according to what Takeshi Numoto, Microsoft’s VP of marketing for its Server and Tools Division, told Bloomberg.

Microsoft must be feeling confident of its future. The week before last it dropped its prices to match Amazon’s rather than undercut them and went into the Infrastructure-as-a-Service business like Amazon. Since then it has reportedly signed up another 10,000 customers.

Involved observers such as Eucalyptus CEO Marten Mickos figure Microsoft still has a go-to-market problem especially among the start-ups that have flocked to Amazon. Established firms, on the other hand, have a long-standing relationship with Microsoft and Microsoft also has a private cloud and web-based apps to offer them. Gartner estimates the IaaS market will balloon to $30.6 billion by 2017, up from $6.17 billion last year.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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