Microsoft Azure is on track to outperform Windows
The cloud is such an established aspect of corporate computing that uptake rates seldom hit the headlines any more. The fact that physical hardware sales continue to slow despite exponential growth in volumes of data stored is proof of a significant shift in the way that CTO's approach storage and processing.
But sometimes it’s hard to visualise just how fundamental this change really is. As the second largest player in the cloud infrastructure, Microsoft Azure has to be big – and a new analyst note circulated to clients of KeyBanc Capital Markets helps to create some context.
Azure is really, really successful
Microsoft is always circumspect about precise revenue figures for their Azure public cloud services. But they do publicise revenue growth. And the 2019 Q1 figures show Azure achieved a 76% growth over the previous quarter – and 47% year-over-year.
Clearly, these are the sorts of numbers that every Finance Director would like to achieve. Especially when you consider that equates to $8.5 billion.
And according to KeyBanc Capital Markets, that figure will continue growing quickly. Indeed, by 2021, they expect to see Azure top $26.4 billion.
Again, these are massive numbers – but what do they mean? Perhaps the best way to illustrate Azure growth is to compare it with a product we all know – Microsoft Windows.
Bigger than Windows
Microsoft Windows runs on approximately 90% of all desktop PCs. It accounts for at least 33% of all server operating systems too. In corporate computing (and 16% of Microsoft’s revenue), Windows is “a big deal”.
But by 2021, Microsoft’s public cloud services will overtake Windows for the first time. The hosted computing infrastructure will be worth more than the physical PCs and servers you encounter every day.
A good omen for Azure cloud adopters
For businesses considering a move to the Azure platform, these revenue growth statistics are a good sign. As long as the platform continues to make money, Microsoft will keep investing in infrastructure and improvements.
This means that Azure will continue to evolve, with new services being added on a regular basis designed to help your business grow and to build systems that transform the way you work. Which means that your own investment in Azure will pay for itself, as you get more of what you need without the capital investment associated with building an in-house data centre.
Obviously, analyst forecasts need to be treated with caution – IT industry predictions are notoriously difficult to make accurately. But the fact is that these estimates do, in the main, match up with our own anecdotal experience. Azure growth is accelerating – just a lot faster than most people realize. The pace of growth means that skills and experience out in the marketplace is struggling to keep up - so businesses should ensure they have access to experts who can take full advantage of everything Azure has to offer.
As an accredited Microsoft Azure Expert Managed Services Provider, Navisite is well placed to help your business realize all of the strategic benefits available from the Azure platform. To learn more, please get in touch.