It is reported that in the commercial cloud service market in the fourth quarter of last year, Amazon's AWS market share was 62%, which was in a downward trend compared with the same period in 2016, while Microsoft continued to keep a straight upward trend. Analysts predict that Microsoft's growth may reduce Amazon's revenue growth.

According to foreign media reports on January 13, according to the latest research report of KeyBanc analysts, Amazon's market share in commercial cloud services is declining in the fourth quarter of last year, while Microsoft continues to maintain its growth momentum.

On Thursday, KeyBanc analyst Brent Bracelin pointed out in the report that Amazon's AWS cloud service market share in the fourth quarter of last year was 62%, a certain degree of decline compared with 68% in the same period last year. The market share of Microsoft Azure rose from 16% to 20%, while Google’s share increased slightly by 2%, from 10% in the same period last year to 12%.

Market share of commercial cloud services in the fourth quarter of 2017: Amazon is in a downward trend Microsoft's small growth

Microsoft CEO Satya Nadella

From the report, we see that Azure Cloud Services will contribute approximately $3.7 billion in revenue to Microsoft in 2017, while Microsoft's total revenue for the full year is estimated at $96.6 billion. This indicates that Microsoft's cloud services business has doubled its business growth, which is consistent with the continued growth of Azure in recent quarters.

At the same time, Amazon has said that AWS's revenue growth in the third quarter was 42%, but analysts predict that Microsoft Azure growth will reduce Amazon AWS revenue growth.

KeyBanc also compared the artificial intelligence tools of the three cloud service providers in the report, and found that Microsoft provides more pre-built models than Google and Amazon, and can be obtained from data centers around the world.

Due to Azure's market share growth and Microsoft's achievements in artificial intelligence, analysts raised Microsoft's 12-month target price from $94 to $106, and Microsoft's share price closed at $89.60 on Friday.

Analysts said: "After contacting Microsoft executives, we believe that most of Microsoft's revenue will come from related infrastructure services, rather than the monetization of specific artificial intelligence services. Because Microsoft will need more intensive model training in the future. And continuous investment."

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