Azure is closing the gap with Amazon's (AMZN) - Get Report AWS, a Credit Suisse analyst said Monday, citing a report that suggests rising adoption of Microsoft's (MSFT) - Get Report cloud computing service.
Brad Zelnick referred to the RightScale 2019 State of the Cloud Report from Flexera, which is based on a survey of 786 technical professionals in a note to investors.
The report said that overall Azure adoption grew from 45% to 52% to narrow the gap with AWS. As a result, the report said, Azure adoption has now reached 85% of AWS adoption, up from 70% last year.
"Azure continues to catch up with AWS overall especially among enterprises, where Azure adoption increases slightly from 58% to 60%, while AWS adoption in this group is relatively flat at 67%. This puts Azure with 89% of the AWS adoption based on the overall number of respondents using each cloud," the Cloud Report said, noting that Google maintains its third-place position, increasing slightly from 18% to 19% adoption.
The Cloud Report said that 52% of cloud beginners chose AWS compared with 41% for Azure. Google sees significantly stronger adoption when users are advanced (24%) compared with beginners (9% adoption).
The State of the Cloud report said that in its second year of availability, VMware Cloud on AWS moved up to fourth position, increasing to 12% from 8% in 2018, a growth rate of 50%.
Zelnick, who rates Microsoft outperform, also cited a report that Microsoft and VMware are partnering together to offer a joint cloud service that will help migrate VMware workloads to Azure, without rearchitecting and recoding applications. The report by the Information suggested the service could be announced as part of a broader partnership in the coming weeks, Zelnick said.
Shares of Microsoft were down 1.46% to $110.89. Shares of Amazon were up 1.26% to $1,692.77.