After sharing the leadership with Amazon in 2021, Microsoft stands out and becomes the undisputed global leader of the cloud in 2017. Its Office Office solution is a big part of this result. But its spectacular rise in the infrastructure cloud is also important.
That’s it, Microsoft becomes the world’s undisputed leader in the cloud in 2021 with a turnover of $ 18.6 billion, against $ 17.4 billion for the number two Amazon Web Services according to figures released by both companies. This will put the global software giant on track to achieve the goal set by its CEO Satya Nadella to break the $ 20 billion mark in 2018. In 2021, Microsoft shared global leadership with Amazon Web Services with each one turnover of $ 12.2 billion.
OPENING STRATEGY OF SATYA NADELLA
” This result is impressive,” Olivier Rafal, an analyst and consultant with the French firm Pierre Audoin Consultants (PAC) , told The Digital Factory, especially since Microsoft has come a long way, testifying to the extent of the company’s transformation. This is the result of a proactive and transformative strategy that began under the reign of Steve Ballmer and that Satya Nadella has amplified with a great novelty: the openness to other technologies than Windows and bricks from from the outside . ”
Like IBM , Google or Oracle, Microsoft is present in the two big segments of the cloud: SaaS for Software as a Service through its Office 365 office solution and Dynamics 365 management solution, and on-demand infrastructure. (IaaS for Infrastructure as a service and PaaS for Platform as a service) through its Azure platform. The giant of Redmond does not publish the details of the figures in this activity. According to data provided to The Digital Factory by Synergy Research, the infrastructure segment would be worth $ 5.2 billion in 2017, leaving $ 13.4 billion in the SaaS segment. “Office 365 is clearly the biggest part,” says Olivier Rafal. It is the main driver of Microsoft’s rise to the cloud. ”
OFFICE INSTALLED BASE, KEY TO MIGRATION
With Office, Microsoft has a master card that no other software publisher has. ” It equips almost every company in the world, with 1.2 billion users according to the Microsoft website, says Olivier Rafal.It is a colossal installed base.And in this application, Microsoft does not face any big Even Google, initially suspected as a threat with its G Suite solution, has proved unable to make the weight.It is easy in these conditions to migrate customers to Office 365. Especially as they find there an interest in accessing collaborative or file-sharing features that they do not have with the traditional solution. ”
The story is more mixed for Dynamics.”In management software packages, Microsoft is confronting powerful competitors like SAP , Oracle or even Sage,” notes Olivier Rafal, ” even for them, it’s complicated to migrate to SaaS.They enter SaaS mainly through acquisitions of pure players, but Microsoft had the intelligence to break down Dynamics 365 so that customers could choose the only modules that they are interested in. This is how Dynamics 365 meets with some success in customer relationship management. ”
SURPRISE IN THE INFRASTRUCTURE CLOUD
In the infrastructure segment, Microsoft surprised observers by becoming in only three years the biggest challenger of Amazon Web Services with 13% of the market in the fourth quarter of 2017 according to Synergy Research, against 33% for the armed arm of Amazon in the cloud, but far ahead of the number three IBM credited 7.5%. ” I am impressed with this result, says L’Usine Digital Seror Lawrence, patron of Outscale, the cloud infrastructure subsidiary of Dassault Systemes . I never thought it would come to this. I thought he would eventually abandon this segment to refocus on what it does best: the software and its corollary the SaaS. ”