Microsoft has been within the server enterprise for nearly three many years. Regardless of the widespread recognition of Linux and open-source database alternate options, Microsoft managed to make Home windows Server and SQL Server well-liked amongst enterprises worldwide. In 2006, Amazon entered the server market with its progressive cloud-based choices underneath the AWS model.

Microsoft responded to Amazon’s entry with its personal cloud choices underneath the Azure model, but it surely was 2–3 years late. This early-mover benefit helped AWS set up itself because the clear chief within the cloud market, with practically double the market share of its closest competitor.

Right now, Amazon reported its monetary outcomes for the primary quarter ended March 31, 2025. AWS phase income elevated 17% yr over yr to $29.3 billion, whereas working revenue rose to $11.5 billion, up from $9.4 billion in Q1 2024. Yesterday, Microsoft reported its monetary outcomes for Q3 FY25. Its Clever Cloud phase income was $26.75 billion, with an working revenue of $11.1 billion.

Primarily based on these figures, AWS now generates extra income and revenue than Microsoft’s whole Clever Cloud phase. This phase contains server merchandise and cloud companies similar to Azure, GitHub cloud companies, Nuance Healthcare cloud companies, digital desktop choices, and on-premises merchandise like SQL Server, Home windows Server, Visible Studio, System Heart, associated Consumer Entry Licenses (CALs), and varied enterprise and accomplice companies.

It’s fairly an achievement for AWS to enter a very new enterprise and efficiently compete with sturdy gamers like Microsoft, Oracle, and others. The rivalry between Microsoft and AWS within the cloud market will likely be particularly attention-grabbing to observe within the coming months, as AI continues to disrupt the business.

Whereas AWS at present leads in total cloud income, the quickly rising AI companies market presents a brand new battleground. Microsoft’s strategic partnership with OpenAI might present an important edge, probably reshaping the cloud market dynamics within the close to future.