Microsoft: Is the Master of Windows 10 Updates Really Beating Amazon in the Cloud?

November 7, 2018

How about that October 2018 Windows update? Does that give you confidence in Microsoft’s technical acumen? What? You are telling me that it is apples and oranges. Okay. Everyone is entitled to an opinion.

After reading a former Oracle executive’s analysis of Microsoft and Amazon cloud revenue, I suppose one could make that argument. I am not sure I buy the Forbes argument in “#1 Microsoft Beats Amazon In 12-Month Cloud Revenue, $26.7 Billion To $23.4 Billion; IBM Third.” The write up makes clear that the analyst is an award winning PR type at SAP and then a “communications officer” at Oracle before finding his true calling at Evans Strategic Communications LLC.

Is Microsoft #1?

From my point of view in lovely Harrod’s Creek, Kentucky, there are several items of information omitted from the Forbes’ analysis; for example:

How does Microsoft calculate its cloud revenue? Does the number include enforced cloud services?

What part of Microsoft’s cloud revenue is generated by accounting methods such as reallocating revenue and thinking really hard about attributing certain revenue to the cloud line items?

Using these accounting methods, how has Microsoft’s cloud revenue tracked over the last 12 quarters?

Analyses require more than accepting the rolled figure. But that’s in rural Kentucky, the rules may be different for PR experts in a real technology hotbed.

Now Amazon is no Mr. Clean when it comes to reporting its financial data. For years, AWS revenue was expressed as weird stuff like the number of things a complex network of computers does to complete work. Now Amazon generally reveals some numbers, and I assume these can be tweaked by figuring in some of the Amazon ecommerce magic into the cloud.

The larger question for me is:

Why is a former Oracle guy writing a pro Microsoft and pro IBM story about the cloud race among three firms?

The write up included this bit of “let’s not talk about the October update” offered up by Microsoft’s big dog:

CEO Satya Nadella offered this perspective on the centerpiece of the Microsoft cloud: “Azure is the only hyperscale cloud that extends to the edge across identity, data, application platform and security and management. We introduced 100 new Azure capabilities this quarter alone, focused on both existing workloads like security and new workloads like IoT and Edge AI.”

Yep, I believe this. Every. Word.

Perhaps nailing down the inclusions in the gross cloud revenue numbers would be a useful first step? Would it be helpful to learn why an Oracle PR pro is dissing Amazon?

The capitalist tool’s presentation of this analysis might have caused Malcolm Forbes to crash his motorcycle on the way to brunch in Manhattan on Sunday morning.

Quite an “analysis.”

Stephen E. Arnold, November  7, 2018

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