Microsoft vs Amazon: The Cloud War (AWS vs Azure)

there's never been a better time to be in the cloud business even if you're not amazon amazon web services has dominated cloud computing for the past nine years but google and microsoft both giants in the cloud market are growing at a rapid pace alphabet google's parent posted fourth quarter earning results revealing that google cloud generated 8.9 billion in revenue for 2019 an impressive 53 growth from the previous year microsoft's cloud operation azer grew by 62 in the last three months of 2019 faster than any other cloud provider to truly understand why tech giants are fighting over cloud computing we have to look back at the executive retreat at jeff bezos's house in 2003 the amazon leadership team was asked to identify the core strengths of the company one thing became abundantly clear its infrastructure services gave them a huge advantage over their competition it was at that point without even fully articulating it that they started to formulate the idea of what aws could be and they began to wonder if they had an additional business providing infrastructure services to developers from there a grander idea emerged that a combination of infrastructure services and developer tools could become a pseudo operating system for the internet by isolating different parts of the infrastructure compute power storage and databases as components to the operating system and having developer friendly tools to manage them it was possible to conceive of infrastructure especially amazon's as automated and standardized with web services that can call for more resources in 2004 the company's first public acknowledgement of aws emerged in a blog post hinting at the developments to come and the rest as they say is history a few years later the company launched their infrastructure as a service it took time for the idea to take hold but today it's a highly lucrative business aws was first to market with a modern cloud infrastructure service when it launched amazon elastic compute cloud in august 2006. surprisingly it took several years before a competitor responded as such they control a vast amount of market share at least for now rest assured some very well-heeled competitors like microsoft google ibm and others are gunning for them two years after amazon web services had gone live with its simple storage service ray ozzy microsoft's chief software architect announced that the company planned to launch its own cloud computing service called windows azure aussie told the crowd it's a transformation of our software and a transformation of our strategy after the announcement microsoft began to roll out previous versions of its cloud services and in february 2010 the windows azure platform became commercially available early reviews of the service were mixed with many analysts comparing azure unfavorably with aws however microsoft improved azure dramatically over time it also added support for a wide variety of programming languages frameworks and operating systems including linux something that once would have been unthinkable for a microsoft product recognizing that its cloud computing service had moved far beyond windows the company renamed windows azure as microsoft azure in april 2014. in the years since microsoft has continued to expand its cloud capabilities largely living up to aussie's predictions at the initial announcement in 2008 it has also increased its support for open source software and today azure is a reasonable choice even for enterprises that don't run windows servers competing closely with aws microsoft azure is one of the unquestioned cloud leaders and some observers say it has a chance to hit the top cloud vendor long term with azure's rise as a very real threat aws showed no sign of backing down in april 2010 amazon further expanded its reach setting up a region in singapore with local data centers this was the first asia-pacific aws region providing better bandwidth and lower latency for their asian customer base this expansion was continued until 2011 with the asia-pacific northeast region in tokyo japan and in 2012 with pacific southeast in sydney australia in 2012 aws also launched its first sa east 1 region in sao paulo brazil the first south american aws region aws now has over 20 availability zones worldwide spread across the us europe and the asia-pacific region at the end of 2018 they even announced plans for data centers in cape town south africa putting them in every one of the world's continents except antarctica aws now has more than 100 services providing everything businesses need to work seamlessly in the cloud best of all they're constantly developing new services and features to keep their customers at the forefront of cloud computing aws made waves when it was selected by the cia for a private cloud contract worth 600 million in 2013 since then aws has been servicing all 17 u.s defense intelligence agencies which has been a huge reason also why aws is the market leader after four years of aws dominance on government contracts there was a new opportunity in 2017 microsoft and everyone else could feel that this was their chance to dethrone amazon the contract was pentagon's joint enterprise defense infrastructure or jedi for short to understand why this could be the decider on who dominates the multi-billion dollar field of cloud computing for years to come we have to understand what winning this contract means you see when amazon won the cia contract it wasn't just one contract they had won they had won every other major client too because perception around aws was that if it was good enough for the cia it's good enough for everyone so that's why when in early 2018 the pentagon released its proposal for a 10-year 10 billion endeavor to modernize the military's it operations it wasn't just any other contract it was an opportunity companies like azure had long been waiting for although separate branches of the military and intelligence communities had been cutting their own cloud deals for years the new proposal outlined a unified i.t approach for the entire department of defense including classified and unclassified operations notably phase one language says the procurement will be a full and open competition perhaps to squash the rumors that the department of defense plan to issue a competitionless contract this set off a showdown among amazon microsoft ibm oracle and google for the right to transform the military's cloud computing systems the acrimonious process involved intense lobbying efforts and legal challenges among the rivals the pentagon awarded the contract to microsoft in late october 2019. this was supposed to be amazon's contract to lose amazon practically invented enterprise cloud computing 14 years ago with aws when the pentagon put out the requirements for the contract a year and a half ago some competitors cried foul that it was too tailored for amazon but amazon believes the decision wasn't based on merit but rather a personal vendetta as you probably have seen from your twitter feed president trump is not too fond of amazon's ceo jeff bezos trump became publicly hostile to mr bezos who also owns the washington post the president often refers to the newspaper as the amazon washington post and has accused it of spreading fake news a speechwriter for former defense secretary jim mattis says in a book that mr trump had wanted to foil amazon and give the contract to another company the award to microsoft is likely to fuel suspicions that mr trump may have weighed in privately as well as publicly against amazon experts on federal contracting said it would be highly improper for a president to intervene in the awarding of a contract mr trump's vocal criticism of amazon has given amazon ample grounds to protest the award to microsoft in federal court a judge has granted a temporary block on the jedi contract while the case is sorted out but if the previous decision is upheld microsoft's win has implications for the cloud computing industry in which businesses rent space on technology companies server computers giving them cheap and fast access to storage and processing amazon has long been the dominant player with about 45 of the market trailed by microsoft with around 25 said daniel ives an analyst for wed bush securities who has closely followed the jedi saga landing the jedi contract puts microsoft in a prime position to earn the roughly 40 billion that the federal government is expected to spend on cloud computing over the next several years

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Id: VKM39ao4Ppk

Length: 9min 55sec (595 seconds)

Published: Thu Jul 23 2020