• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechPointCloud

Microsoft Azure Cloud Gaining Traction in Business

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
February 15, 2017, 5:53 PM ET
Businessman Looks Up At Red Ladder Extending Into The Clouds
A businessman carrying a briefcase stands at the bottom of a red ladder. He gazes up at the red ladder which disappears into the cloudy sky. The clouds allow for text and copy.DNY59—Getty Images

Use of Microsoft Azure and Google Cloud Platform is on the rise, according to The 2017 State of the Cloud Report compiled by cloud management company RightScale. That’s good news for what are generally seen as the number two and three players in public cloud, respectively, following market leader Amazon Web Services.

A survey of just over 1,000 IT professionals on their usage of public cloud showed Microsoft Azure adoption up to 34% from 20% last year. Likewise, 15% of respondents used Google (GOOG) Cloud this year, up from 10% a year ago. Twenty percent of the survey respondents are RightScale customers and 61% hail from the U.S.

Meanwhile, AWS remains the market leader, with usage holding steady at 57% year-over-year. Penetration of IBM (IBM) rose slightly from 7% to 8% while Oracle (ORCL) Cloud adoption fell slightly from 4% to 3% over the same period.

Get Data Sheet, Fortune’s daily tech newsletter.

Public cloud refers to a massive array of servers, storage, and networking aggregated and managed by one company, which then rents out those resources to many customers. This model is gaining traction as companies seek to augment or even replace their own data centers, which is why many legacy tech companies have jumped into a market AWS kicked off in 2006.

As Fortune reported earlier Wednesday, many big software companies—like Salesforce (CRM), Workday (WDAY), Box (BOX), SAP (SAP), and Infor—that typically stream their software from their own data centers are also using AWS, Microsoft, or other public cloud facilities to run some of their new products.

public-cloud-enterprise

Among a subset of bigger “enterprise customers” RightScale surveyed, 59% said they use Amazon (AMZN) up from 56% last year. Azure, meanwhile, saw a bigger jump with 43% of respondents on Azure now, compared to 26% last year. Microsoft (MSFT), by virtue of its Windows-and-Office franchises, is already established in many of these accounts and is pushing them to embrace Azure as well. Companies in this enterprise category have 1,000 or more employees.

public-cloud-yoy

However, there’s a not-so-silver lining to all this adoption. While public cloud is sold as a relatively inexpensive alternative to buying and running your own servers typically at partial capacity much of the time, the model leads to waste.

If a developer powers up a bunch of cloud servers to run a job and forgets to shut them down when it’s done, the company pays for unused computing cycles. And customers are realizing this. More than half (53%) of the respondents said cost optimization is a top priority, and that percentage is higher (64%) for experienced cloud users who have been at it for a while.

For more on Microsoft Azure, watch:

One reason for cost overruns? A lot of early cloud use was initiated by a single team of developers trying to get a specific job done, often in a way that was not sanctioned by (or even known to) corporate IT. But all those one-off jobs add up, and if IT has no window into what’s going on, costs can get funky, fast.

While respondents said they think they waste 30% of their cloud spending, RightScale thinks things are worse: It estimates that 30% to 45% of cloud budgets are wasted. RightScale has a dog in that fight: It sells services that help customers manage workloads running in different clouds and to minimize waste.

 

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Even Nvidia’s own research teams can’t get enough GPUs amid the race for AI computing power
NewslettersEye on AI
Even Nvidia’s own research teams can’t get enough GPUs amid the race for AI computing power
By Sharon GoldmanApril 9, 2026
9 hours ago
You’re looking at the AI revolution all wrong, top economist says: 40% unemployment and a 3-day work week are the same thing
AIdisruption
You’re looking at the AI revolution all wrong, top economist says: 40% unemployment and a 3-day work week are the same thing
By Nick LichtenbergApril 9, 2026
9 hours ago
Zoom CEO Eric Yuan
Successthe future of work
‘I hate working 5 days’: Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
By Preston ForeApril 9, 2026
10 hours ago
Nutella seen aboard the Orion spacecraft Integrity.
RetailFood and drink
Nutella jumps on the best product placement money can’t buy: A trip to the far side of the Moon
By Catherina GioinoApril 9, 2026
12 hours ago
kash
Cybersecuritycyber
Trump’s ‘cease-fire’ won’t stop Iranian hackers for long, cyber experts say
By David Klepper and The Associated PressApril 9, 2026
12 hours ago
lego
PoliticsIran
AI-savvy pro-Iran groups troll America with Lego Movie-style propaganda videos mocking American failure
By Sam McNeil and The Associated PressApril 9, 2026
12 hours ago

Most Popular

The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
Economy
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
By Fortune EditorsApril 9, 2026
14 hours ago
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
Energy
2 years ago, Saudi Arabia quietly canceled the ‘petrodollar’ deal with America that wired the world economy for 50 years. Then war broke out in Iran
By Fortune EditorsApril 7, 2026
2 days ago
Gen Z doesn't want your full-time job. They want several part-time roles, and it's reshaping the entire workforce
Success
Gen Z doesn't want your full-time job. They want several part-time roles, and it's reshaping the entire workforce
By Fortune EditorsApril 9, 2026
17 hours ago
Self-made billionaire MrBeast says his work-life balance is nonexistent and calls it a ‘miracle’ if he works less than 15-hour days: ‘I live to work’
Success
Self-made billionaire MrBeast says his work-life balance is nonexistent and calls it a ‘miracle’ if he works less than 15-hour days: ‘I live to work’
By Fortune EditorsApril 8, 2026
1 day ago
The U.S. had a national debt ‘home run’ in its grasp, says Jamie Dimon. But the government did nothing, and now its best option is crisis management
Economy
The U.S. had a national debt ‘home run’ in its grasp, says Jamie Dimon. But the government did nothing, and now its best option is crisis management
By Fortune EditorsApril 8, 2026
2 days ago
Gen Z workers are so fearful AI will take their job they’re intentionally sabotaging their company’s AI rollout
AI
Gen Z workers are so fearful AI will take their job they’re intentionally sabotaging their company’s AI rollout
By Fortune EditorsApril 8, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.