According to a recent survey by Jefferies analysts, Microsoft Azure is gaining momentum in the competition with Amazon Web Services (AWS) in the cloud computing market. The survey of 40 US CIOs revealed an increasing focus on cloud adoption, with a slight preference for Azure over AWS.
One of the key findings from the survey is the significant growth in cloud spending expectations. More CIOs (43%) anticipate a rise of more than 10% in cloud spending in 2024 compared to 2023 (28%). This aligns with a clear shift towards cloud workloads, with 58% of CIOs expecting to have over half of their workloads in the cloud by the end of 2025, up from 36% currently.
Jefferies points to artificial intelligence (AI) as a major driver for this increased cloud spending, with 54% of respondents highlighting AI initiatives as a key reason for boosting their cloud budgets.
In terms of cloud service provider preferences, the survey indicates a changing landscape. While AWS and Azure remain dominant, the data shows that Microsoft Azure is gaining ground. Currently, 45% of respondents view Azure as their primary cloud provider, compared to 43% for AWS. This marks a shift from Jefferies’ previous survey where AWS was leading in December 2023.
Looking ahead, Jefferies states that spending intentions slightly favor Azure, with plans for cloud spending higher for Azure compared to AWS. The results of the survey are seen as positive for cloud providers, indicating that revenue challenges for cloud companies may be easing.
Overall, the survey highlights the growing importance of cloud computing, with Azure emerging as a strong competitor to AWS in the cloud services market. Companies are increasingly investing in cloud technologies, driven by factors such as AI initiatives, leading to a shift in the preferences of cloud service providers among CIOs.
Article Source
https://au.investing.com/news/stock-market-news/cloud-war-azure-has-slight-edge-over-aws-says-jefferies-432SI-3332249
