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- Amazon Web Services has the largest share of the public cloud market.
- However, Microsoft is catching up - not only in market share, but also by beating AWS to win the crucial $10 billion Joint Enterprise Defense Infrastructure (JEDI) contract with the Pentagon.
- We talked to 13 executives at companies that partner with these cloud platforms for their take on the rivalry between the two, and whether Microsoft can win.
- The verdict: Amazon's lead will be hard, but not impossible, to beat, they say. Even if Microsoft doesn't topple AWS, they say, there's still a bright future for it in a market that doesn't necessarily want only one cloud to win.
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Amazon has the top spot when it comes to cloud market share, but Microsoft is presenting more of a threat than ever.
Amazon Web Services essentially invented the modern cloud computing market in the mid-'00s, and dominates it to this day. According to estimates from Gartner, AWS has 47.8% market share, with its position reinforced by new products in databases, AI, and other fields.
But Microsoft, the runner-up, is catching up, with its arsenal of long-time enterprise customers. Already, analysts say that AWS - which has historically prided itself on paying attention to customers, not competitors - is showing rare signs of becoming more reactive to Microsoft's big moves.
Underscoring the mounting competition was Microsoft's big surprise win of the Joint Enterprise Defense Infrastructure (JEDI) contract, a $10 billion deal to move the Department of Defense's sensitive information onto the cloud. Amazon is currently challenging Microsoft's win, and AWS CEO Andy Jassy has said the company feels the decision was "not adjudicated fairly" because of political interference.
Even technologically, Amazon appears to be chasing Microsoft in other areas: At its annual re:Invent conference this month, AWS announced that its Outposts product is now available - representing Amazon's big push into hybrid cloud, a market in which Microsoft has long established itself. Likewise, AWS announced Amazon Braket, a new quantum computing service that helps it keep pace with similar efforts from Microsoft and Google.
Amid all of this, Amazon has only recently eased up on long-standing rules that actually prevent partners from mentioning terms like "multi-cloud," which imply that there are other options out there than AWS.
With all this at play, we asked 13 executives at AWS partner companies about whether Microsoft has a chance of beating Amazon for the top cloud spot.
