Microsoft’s repositioning into a mobile first, cloud first company has been a roaring success. The vision of CEO Satya Nadella since he took the role in 2014 has been to grow Microsoft into a leading cloud service provider. It has worked and the company’s dark years trying to cut it as a hardware manufacturer have been forgotten.
While Microsoft does not lead all markets, the company has been called the top “strategic vendor” by Goldman Sachs. As reported in Investor’s Business Daily, the investment firm conducted a survey of chief information officers. Microsoft came out on top, followed by IBM, Cisco, Oracle, and SAP.
The survey was for all top companies, but there is little doubt that Microsoft’s cloud growth has spurred the company in recent years. Some the company’s strategies are noteworthy. Revenue has grown consistently, while 80% of Fortune 500 companies use Microsoft cloud services.
Amazon and Google Trail in Cloud Strategy
Amazon and Google, Microsoft’s two biggest cloud competitors are not as strategic as Redmond it seems. However, Amazon Web Services (AWS) currently beats Microsoft’s Azure to as the market leading cloud service. The most used business-oriented suite is Office 365, while Azure continues to grow its position. Microsoft plans for the platform to make $20 billion in revenue by 2018.
While Amazon and Alphabet trail Microsoft in being strategic, Goldman Sachs says both companies are gaining ground.
“Google and Amazon are expected to be the second- and third-most-strategic vendors in three years, despite not ranking in the top five currently. In terms of being the most strategic vendor three years from now, Google, Amazon, and Red Hat are expected to be the biggest gainers, and IBM, SAP, and Oracle are expected to be the biggest losers relative to their current position.”
The survey shows that cloud is the right business for Microsoft to pursue. Since December 2015, 11% of business has moved to public clouds, up from 6%.