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Windows Azure produced $1B+ in sales in the last 12 months and subscriptions are up 48% in the...

Windows Azure produced $1B+ in sales in the last 12 months and subscriptions are up 48% in the last 6 months, Microsoft (MSFT +0.8%) boasts. Though the sales figure is less than the $2B Amazon Web Services (AMZN) is believed to have pulled in last year (expected by Macquarie to hit $3.8B in 2013), it drives home the momentum behind Microsoft's cloud infrastructure/app development platform, popular with enterprises due to its hybrid cloud support and integration with Microsoft software. Forrester estimates 20% of firms relying on cloud services use Azure vs. 71% using AWS, but thinks Azure's share can hit 35% in a year. (ValueAct) (Office 365 sales)
Comments (2)
  • SillyValley
    , contributor
    Comments (6) | Send Message
     
    MSFT's very survival depends on the Cloud and Azure in particular. The first adopters of the Cloud are those that do not want to create an IT infrastructure for their fledgling company (i.e. startup or high growth small to mid-cap firm) and then mid-cap to large enterprise companies who are upgrading their antiquated IT infrastructure. The economics of embracing the cloud will outweigh the security concerns of having their data compromised. Adoption will rapidly accelerate this year forward and I agree that MSFT has an advantage because of the business applications that many companies already use. But for the next few years, both AMZN and MSFT will be a good play because we are in the infancy of adopting this method for accessing common applications and storing the associated content and both are very capable of rising to the fore - MSFT because of their cash hoard to build many new data centers (the "Cloud House") and AMZN because they invest all their earnings to build this expensive infrastructure. By the way, "Cloud Houses" costs are decreasing because rather than have highly reliable and redundant facilities infrastructure, cloud software is providing the redundancy in case of an infrastructure failure, so what's called an N+2 (fully redundant) facility is not necessary for Cloud Houses, reducing costs.
    30 Apr 2013, 02:04 PM Reply Like
  • rjgood
    , contributor
    Comments (233) | Send Message
     
    Well said. This is just the beginning of MSFT transitioning to a "hardware and service" company. A positive beginning indeed.
    30 Apr 2013, 03:39 PM Reply Like
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