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Microsoft Corporation (NASDAQ:MSFT) Cloud Boss Ignores Google Inc (NASDAQ:GOOGL)

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Microsoft Corporation  is no longer a relic of an era long gone as the takes giant strides to challenge Apple and Google Inc . One of those strides is the rapid growth being recorded in its cloud computing space– Microsoft Azure. In a recent interview, Mark Russinovich, Microsoft’s CTO of Azure cloud talks about Azure, Amazon AWS, and Google Cloud, which is a distant third.

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Azure is Microsoft’s cloud business that provides practically endless computing power to clients who may not want to set up their own servers. The cloud war has been mainly between Amazon and Microsoft despite all the noise that Google makes about its Google Cloud Platform Network.

Google is not in the cloud picture

Russinovich in an interview with Fortune earlier this week called Google a “wild card” in the cloud space because it is “unclear what their strategy is.” He said that Google has made heavy investments in the cloud. “It’s very clear that they’ve got all the deep pockets” he added.

However, he believes that deep pockets doesn’t usually mean success in the cloud space. In his words, “To be honest, when customers come in, they talk about us and Amazon…“We don’t hear Google show up in the conversations.”

He believes that the recent change in which Google became Alphabet would have made sense if the firm had spun-off its cloud computing business. He sees the decision to keep GCP as part of the Google brand as a missed chance.

Growth in the Microsoft cloud

Amazon is the de factor leader in the cloud space but Microsoft  is hot on its heels. The firm has been growing its cloud business after it invested $15B in building Azure.

Experts believe that Amazon’s AWS will record more than $7B in sales next year and there are indications that Microsoft’s Azure is close on Amazon AWS’ heels. In fact, Microsoft says its cloud is on track to be a $6.3 billion business and that cloud revenue grew over 100% as Azure cloud usage doubles.

A survey conducted by Cowen CMT Team this year provided an insight into the growth of Microsoft’s cloud business. In cloud related budget share, Amazon’s AWS has a 27% share while Azure has a 23% share. However, in the overall usage of cloud platform, Azure is ahead with 45% as opposed to AWS’ 44%.

Microsoft is no longer the sleeping giant it used to be and investors are already taking note. The CTO says Microsoft’s strength is its long history as an enterprise firm that’s serves the need of users and business. Bridging the needs of consumers and businesses has been the secret behind success of Microsoft all along.

 

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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