In the cloud computing space, two giants continue to dominate the field: Microsoft Azure and Amazon Web Services (AWS). With the trend toward cloud migration continuing to surge, their popularity will only continue to surge.
If you’re like most businesses today that are completely or partially moving their organization’s workloads and applications to the cloud, you may be wondering how to choose between the two most popular cloud service providers.
Since both platforms offer a variety of features that are attractive to different businesses, this is a common dilemma many businesses are facing.
In this article, we’ll break down the features, benefits, and best use cases of Azure and AWS to help you decide which cloud services provider is right for your business.
Why Are Businesses Moving To The Cloud?
Rapid technology advances and competitive pricing are fueling the race for businesses to update and modernize their IT infrastructures to remain competitive in today’s marketplace.
Many are choosing to leverage the benefits of moving partially or entirely to the cloud to optimize their technology to give them a competitive advantage.
Businesses of all sizes are increasingly moving to the cloud because it provides a secure way to store and access data off-premises without the need to buy and maintain expensive data storage equipment in-house.
The versatility of cloud platforms is helping to drive the growth of the Infrastructure-as-a-Service (IaaS) trend. Businesses enjoy the pay-as-you-go model used by cloud providers to get the storage, servers, and networking they need without the hardware.
Both Azure and AWS provide similar ability to scale cloud resources. They allow businesses to run their software and IT infrastructure virtually in the cloud.
What Are The Benefits Of Using Microsoft Azure And Which Businesses Is It Best Suited For?
Microsoft Azure
History
Azure was launched in 2010 as Windows Azure, before being renamed to Microsoft Azure in 2014.
About 95 percent of Fortune 500 companies use Azure, including Microsoft itself, eBay, Verizon, LG Electronics, Shell, Walmart, 3M, and Boeing.
As of August 2024, more than 485,000 businesses were using the cloud platform for their daily operations, representing a 24 percent market share.
Advantages of using Azure
Cost savings
Microsoft offers a discount to businesses with existing Microsoft licenses.
Seamless integration
Azure is best suited for established businesses that have on-prem Windows servers and existing Microsoft licensing.
Ease of use
Some users find that Azure has a relatively intuitive interface that’s easy to use, especially for beginners.
Cybersecurity and compliance
Azure has a strong suite of built-in security tools, policies and procedures to help safeguard your data, including data encryption, controlled access and identity management, network security, and threat detection.
Azure supports a wide range of compliance standards including HIPAA, FedRAMP, NIST SP 800-53, ISO 27001, SOC 1, and SOC 2, among others.
Disadvantages of using Azure
- Pricing can become expensive without guidance from an internal cloud professional or outside managed IT service provider (MSP). For example, there may be a charge for some features that come standard or at a discount with other cloud platforms.
- Vendor lock-in is another concern with using Azure, potentially leading to limited flexibility and higher prices.
- Since Microsoft Azure doesn't offer cloud-based data center management, you have to have an IT professional either on staff or through an MSP to manage your cloud resources, including configuration, deployments, monitoring, patching, and other services.
What Are The Benefits Of Using Amazon Web Services (AWS) And Which Businesses Is It Best Suited For?
Amazon Web Services (AWS)
History
Launched in 2006, AWS is the oldest and most dominant cloud services provider in the world. Although estimates vary, it commands anywhere from about 40 percent to about 50 percent of the total cloud computing market.
In fact, the cloud behemoth is bigger than all of its competitors combined. An estimated 2.38 million businesses were AWS customers in 2023. Its largest customers include Apple, Netflix, JPMorgan Chase, Nasdaq, Ford Motor, and McDonald’s.
AWS earned $90.8 billion in revenue in 2023, compared to Azure’s 2023 revenue of $68.1 billion. In October 2024, Amazon reported $10.45 billion in third quarter operating income for its cloud platform, representing 60 percent of the parent company’s profit, according to CNBC.
Advantages of using AWS
Networking functionality
Businesses that need networking services in the cloud for remote or hybrid staff may benefit from using AWS. AWS offers more than 200 on-demand services and unique features available for many different workloads.
Reliability
While business hours are typically 9-5, businesses are actually running 24/7/365 and need a cloud solution that will keep pace with their infrastructure demands. AWS’s expansive geographic footprint and storage capacity helps ensure increased uptime and network performance for businesses.
Flexibility for start-up businesses
Although it does have its share of enterprise customers, AWS actively targets startups. Startups and small and medium-sized businesses (SMBs) are the fastest-growing segment in AWS’s customer base.
Entrepreneurs looking for native cloud services, especially start-ups with a strong web presence, stand to benefit from AWS’ extensive options and functionality. Without the upfront costs of an on-prem IT infrastructure, startups can get up and running quickly, while scaling their cloud service options as they grow.
e-Commerce
With Amazon itself being the world’s largest online retailer, it stands to reason that AWS would target that slice of the cloud marketplace. It offers a wide array of customizable plug-and-play tools for e-commerce businesses to host their web platforms and reach customers.
Global reach
Since AWS has so many data centers around the world, it can offer increased reliability and accessibility for businesses, especially international businesses.
Security
AWS comes with robust security controls. It supports 143 security standards and compliance certifications, including PCI-DSS, HIPAA/HITECH, FedRAMP, GDPR, FIPS 140-2, and NIST 800-171.
Disadvantages of using AWS
- AWS has faced concerns about its pricing transparency among some businesses who don't have the benefit of an external MSP or an employee who is knowledgeable about the cloud. For instance, unexpected data transfer and storage costs could result in excessive bills.
- Since AWS splits its data center resource allocation by region, users may experience service limitations in remote regions. Some regions may not have certain services available to them, or there may be delays in getting the latest updates.
- The wide range of services offered by AWS can also be a disadvantage. Since AWS frequently adds new features and functions to its stack, businesses will need to be able to adapt quickly to the updates. This will also require regular staff training to stay up on the latest developments.
The Bottom Line When Deciding Between Cloud Providers Azure and AWS
Whether you decide to go all in on migrating to the cloud, remain completely on-prem, or opt for a hybrid combination of the two, there are a number of factors you have to consider, including:
- your available resources
- end-of-life expectancy of your servers and other hardware
- cost (upfront and ongoing maintenance costs)
- the specific data storage, networking, communications, or other solutions you need
- existing security measures and regulatory requirements
After reading this article, you now understand some of the main differences between Azure and AWS, along with some of the pros and cons of each cloud service provider. Keep in mind that while these are the two largest cloud platforms, there are many others.
Need more help choosing a cloud provider? Check out this article 8 Questions To Ask When Vetting Cloud Providers For IT Services.
Read here to learn why employee security awareness training is critical to safeguarding your sensitive data and IT infrastructure.
If you're considering moving some or all of your data, networking, or IT infrastructure to the cloud, you may be thinking about turning to an external managed IT company for help.
At Kelser, we have years of experience successfully helping businesses of all sizes fully migrate to the web or establish and manage a hybrid cloud environment.
Click on this link to find out about more about our managed IT support.
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