Microsoft’s cloud growth is led by Office 365, their productivity suite that’s been around for 20+ years. For most Microsoft’s customers, that means exporting all their existing emails / contacts / calendars that reside on their internal Exchange server to Microsoft’s cloud. All the productivity applications (i.e., outlook, excel, powerpoint, access) still run on their local PC / notebook.
A considerable amount of Amazon’s cloud revenue is derived from moving servers run in traditional corporate datacenter to Amazon’s datacenter. A very different model. Both Amazon and Microsoft are working on delivering both services.
Charley Blaine provides additional insights about how both companies reported financials are leading him to predict a $128 billion cloud industry
“the market for cloud services will hit $128 billion a year “in the next few years.” I’d guess sooner rather than later.”