I don’t think this is true at all. I see a couple of very obvious reason that large organisations go with Azure.
1) Most large orgs already have Exchange/AD/SharePoint infrastructure. Move that into the cloud and boom, you’re already an Azure customer whether you noticed it or not. Want to take some more IaaS services on? Want a cloud SCM?... Don’t worry about procurement, you’re already a customer.
2) Procurement decisions in large organisations have to satisfy a lot of different stakeholders. A big, reputable vendor, that can solve a huge number of your problems all at once is remarkably attractive to such an organisation. Azure doesn’t have the same features as AWS, but that doesn’t matter. Most of the decision makers don’t care, and the technical teams aren’t likely to use the fancy AWS services anyhow. Forklifting their infrastructure into the cloud was a enough effort to begin with.
This model is very common in enterprise software/services. Symantec and Cisco are other examples of a companies exploiting the same dynamics. Their products are mostly garbage, they go around acquiring other products, and then poorly incorporating them into their portfolio. But they have a large market share to sell new things into, and when they’re talking to their customers they can pitch “just buy all of our products, and that’s like 80% of your compliance worries solved. No need to deal with 10 vendors”.
Microsoft are actively telling their customers (Enterprise) to stop paying for SQL licensing and instead, pay for Azure costings and they've waive their licensing fees.
It's a genius move considering their customers who are already embedded in SQL and Microsoft Server.
Source: we're a heavy MS SQL shop, but are on AWS and are regularly approached by MS with their offers.
I don’t disagree with #1. But #2 is not really valid IMO. In terms of cloud AWS fills the role of nobody got fired for picking IBM as opposed to Azure.
> In terms of cloud AWS fills the role of nobody got fired for picking IBM as opposed to Azure. Procurement decisions usually start with AWS.
This perspective isn’t shared by a lot of big companies. For most smaller, younger, technically oriented organisations, this is true. But large enterprises have a complete different set of values, priorities, and ways of doing things. The kind of organisations that are used to running huge Exchange, AD, SharePoint infrastructure often don’t see things that way, and often won’t be able to get much value out of AWS’s feature advantages over Azure anyway.
Of course you’ll find examples of large enterprise that love AWS, or GCP, but having witnessed how a lot of procurement decisions play out in these kinds of organisations, it’s absolutely not surprising to me to see Azure doing well I’m this segment. Especially for organisations that have invested heavily in GPO over the decades, I think a lot of them see AD alone as a killer feature.
1) Most large orgs already have Exchange/AD/SharePoint infrastructure. Move that into the cloud and boom, you’re already an Azure customer whether you noticed it or not. Want to take some more IaaS services on? Want a cloud SCM?... Don’t worry about procurement, you’re already a customer.
2) Procurement decisions in large organisations have to satisfy a lot of different stakeholders. A big, reputable vendor, that can solve a huge number of your problems all at once is remarkably attractive to such an organisation. Azure doesn’t have the same features as AWS, but that doesn’t matter. Most of the decision makers don’t care, and the technical teams aren’t likely to use the fancy AWS services anyhow. Forklifting their infrastructure into the cloud was a enough effort to begin with.
This model is very common in enterprise software/services. Symantec and Cisco are other examples of a companies exploiting the same dynamics. Their products are mostly garbage, they go around acquiring other products, and then poorly incorporating them into their portfolio. But they have a large market share to sell new things into, and when they’re talking to their customers they can pitch “just buy all of our products, and that’s like 80% of your compliance worries solved. No need to deal with 10 vendors”.