NEW YORK (TheStreet) -- Microsoft's (MSFT) fiscal 2014 third-quarter cloud results demonstrated that the company is catching up to Amazon Web Services' (AMZN) market share in the enterprise space. But it's unlikely to surpass Amazon any time soon.
During the quarter, Microsoft saw Azure sales grow over 150% and Office 365 revenue increase over 100%, the company noted when reporting earnings results. Considering the company has not revealed the size of its customer base for either product, it's difficult to gauge exactly how impressive the amplitude of the growth really was.
Still, the 100% plus surges are nothing to sneer at and show that like competitor Google (GOOG), Microsoft is clearly offering credible, alternative opportunities to AWS in enterprise cloud. Microsoft continues to demonstrate that it has bit by bit been lessening the dominance of AWS over the last two years, and that's not only good for Microsoft, but also healthier and more balanced for the enterprise cloud market in the long-run.
"A 100% rise in this market is obviously very good but it's not something that we need to translate as Microsoft being ahead of the rest," said Laurent Lachal, senior analyst and group lead at Ovum Software Group's cloud computing research group. "That's not the case. It's not what's happening. It's well placed but I don't think that on the basis of these figures Microsoft positions itself as ahead of all the main competition in the market." Lachal says Azure, Microsoft's direct competitor to AWS, needs to keep up with the 150%-type increase highlighted in its latest financial results in order to continue catching up with AWS.