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Microsoft Expected To Make Major Cloud Gains At The Expense Of—Everyone

On the heals of a survey showing Microsoft making significant inroads in the cloud industry, Morgan Stanley has even worse news for the company’s competitors, according to Business Insider. In t...
Microsoft Expected To Make Major Cloud Gains At The Expense Of—Everyone
Written by Matt Milano

On the heals of a survey showing Microsoft making significant inroads in the cloud industry, Morgan Stanley has even worse news for the company’s competitors, according to Business Insider.

In the previous survey by Goldman Sachs—despite AWS taking in the lion’s share of cloud revenue—97% of companies said they currently use Azure, compared with 58% for AWS and 25% for Google Cloud. Even more concerning, the survey showed that far more companies were planning to use Microsoft’s platform within the next three years compared to its competitors.

Morgan Stanley’s research provides more validation for Microsoft’s current strategy, predicting the company will “gain the largest percentage of IT budgets over the next three years, while VMware, Cisco, Hewlett Packard Enterprise, Oracle, and Dell stand to lose the most.”

Further complicating things is an expected slowdown in IT budgets in 2020. The slowdown will negatively impact the above companies as more and more businesses move to the cloud. This move signals more good news for Microsoft, however, as it is expected to see gains “driven by an increasing proportion of customers citing Microsoft as their preferred hybrid cloud vendor,” according to the survey.

After years of telling customers onsite hardware was antiquated and unnecessary, even Amazon recently joined the hybrid market. As Business Insider points out, with Microsoft’s lead in this particular segment, Amazon may regret ignoring the hybrid cloud market for so long.

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