Microsoft and Amazon compete to become the cloud service’s market leader in India. With the pandemic-enforced quarantine, the cloud-computing market has been gaining its spotlights in India. The question then arises: which one will win, Microsoft or Amazon?
Why India?
India is currently the main market for the growth of both companies. India’s annual growth in terms of cloud services is significant. In 2019, India follows behind China and Indonesia and ranked third with 34% annual growth recorded. India alone accounts for 1.2% of 2019 cloud services’ global revenue with $2.4 billion. Experts expect India will grow more in 2020.
Microsoft and Amazon’s relationship with India
Microsoft is most probably one step ahead of Amazon in approaching India. Mint starts off the history in 2017 when Microsoft signed an exclusive arrangement with Flipkart. Microsoft then continued with a $200 million investment in the e-commerce company. Mint also mentioned one notable issue in 2019 where Microsoft partnered up with Reliance Jio for a 10-year strategic partnership. Microsoft agreed to serve affordable access for cloud services to Indian businesses through Azure.
Amazon Web Services (AWS) is not as passive as Microsoft. After Flipkart replaced AWS for Microsoft in 2017, AWS has recently joined a partnership with Bharti Airtel. A year just after the Microsoft-Jio alliance. AWS is also slowly regaining its popularity in the country through Zoom and Slack. Two cloud-based telecommunication which servers are predominantly hosted by AWS.
Microsoft vs Amazon: Which is the stronger contender?
Mint cites research firm Jefferies’ prediction stating that Microsoft’s Azure might have made 17% of Microsoft’s annual revenues with $23.6 billion in 2020. Meanwhile, AWS is estimated to have contributed around $46.1 billion, 13.5% of overall Amazon’s revenues.
Amazon’s AWS reported a 29% revenue growth from last year’s quarter. AWS (contributed) to 31% of operating margin and 57% of Amazon’s operating profit in the last quarter. An immense growth to say with the ongoing pandemic dragging businesses. Meanwhile, Microsoft’s intelligent cloud business, the home for Azure, recorded a 17% growth.
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