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Amazon Web Services and Microsoft Azure are two of the leading cloud-based infrastructure as a service (IaaS) providers. In the past decade, both companies have created a broad range of flexible, stable and profitable services. But which one is right for your business?
Learn everything you need to know about the mainly open-source Amazon Web Services with its vast network of partners and its growing specialist marketplace for Linux and Windows compared to the more closed-source Azure with its nascent Linux offerings.
As an IaaS provider, Amazon groups its Amazon Web Services capabilities into the following categories.
When using Amazon Web Services, you can monitor your infrastructure resource usage through management tools like Amazon CloudWatch, AWS CloudTrail for tracking user activity and API usage, and AWS Config for tracking resource inventory and changes. Additional solutions offered by AWS include e-commerce.
AWS was launched by Amazon in 2006. Per Amazon’s Q1 2022 earnings, it’s now responsible for 16% of the company’s total revenue and grew 36% in the past financial year.
For IaaS, Microsoft Azure provides the following service categories. You’ll notice many similarities to AWS – and some differences.
Azure also has a number of services and integrations for in-depth monitoring and alerting on infrastructure performance metrics and logs. Integration with Microsoft products, in general, is very good thanks to the vendor’s historic focus on its enterprise customers. Active Directory integrates particularly well, so much so that you can use the same Active Directory accounts you have now to sign in to Azure cloud offerings like Office 365 or your Azure SQL instances. Visual Studio and TFS integration is also first-class.
If you want to run application servers like SQL or BizTalk on AWS or Azure, Microsoft offers license mobility for both cloud platforms. Before signing up with either one, inquire whether your servers are eligible for license mobility.
If you have an on-premises Windows server with SQL Server and you run the same stack in the cloud, you will pay for two Windows server licenses, as that license is charged by usage and it is not eligible for mobility. Your SQL Server license, however, is eligible, and you can use the license you already paid for to run your SQL Server instance in the cloud.
Most businesses want some things running via the cloud and other operations conducted through servers in their own data centers that are fully under their own control. Fortunately, AWS and Azure provide strong support for companies that want to operate a hybrid cloud. With a hybrid cloud, you can use the public cloud to run applications and deploy infrastructure assets and applications while still using your on-premises computing resources. You can seamlessly transition between the two when appropriate.
Microsoft initially led the hybrid cloud market with platforms like Azure StorSimple, Hybrid SQL Server and Azure Stack. In recent years, Amazon has caught up, offering 21 hybrid cloud services for AWS in comparison to Azure’s 15.
Cloud service providers go to extraordinary technical lengths to protect their clients’ confidentiality with very high-grade cloud data encryption. So, even if a hacker does get in, it’s almost impossible for them to crack the encryption to get to your company’s raw data.
Both Amazon and Microsoft have dedicated government areas of their clouds so that strict compliance requirements, like ITAR, DISA, HIPAA, CJIS and FIPS, are met. These areas are cordoned off from all other workloads and are accessible by screened U.S. persons only.
AWS has had the lead over Azure in this department, but the gap is closing between the two providers. Azure has the same necessary certifications as AWS, and some agencies have decided in its favor. For those that have used Microsoft software historically, Azure may be easier to integrate as long as its platform offerings meet your requirements.
For open-source needs, the first cloud infrastructure provider to come to mind would not be Azure. Microsoft’s relationship with the open-source community has never been great, which led to Amazon opening a significant lead over Azure in the open-source cloud hosting space.
Amazon has been Linux-friendly from the start, and the company has never expressed suspicion about open-source software. In addition, developers were more likely to be comfortable with AWS and its open-source tools integrations because of the vendor’s hospitality.
However, both Amazon and Microsoft are now embracing open source in one of the biggest strategy shifts we’ve seen out of Redmond in a long time. PowerShell and .NET Core are open sourced and taking pull requests on GitHub. SQL Server runs on Linux, and Hyper-V will be running Docker. The trend continues in Azure, where you can now run Red Hat Enterprise Linux and Apache Hadoop clusters.
AWS is still likely the more attractive option, but try not to dismiss Azure until you’ve thoroughly investigated its latest open-source abilities. The gap between the two vendors is closing fast.
Licenses governing open-source software allow users to change the source code of the software. You are allowed to sell modified versions of open-source software as long as you make your code freely available to others.
It’s widely agreed that shifting as much work and storage to the cloud from office-based hardware will save businesses money in the medium to long term. However, pricing AWS and Azure services is difficult. For starters, both Amazon and Microsoft allow you to bundle different products to create a custom solution that fits your organization’s needs. As a result, there is no consistent cost to advertise.
Fortuhermore, even though both vendors offer price calculators on their websites, such tools may ultimately be meaningless. That’s because some of the factors that will affect what you actually pay have as much to do with user behavior (like shutting down virtual machines when not in use) as the actual workloads you want to run.
AWS and Azure compete across many categories, although there are often major differences between similar services. Below is a selection of the services offered by both vendors listed by category and service type, according to Google, which offers its own cloud service as well.
Service category | Service type | AWS offering | Azure offering |
App modernization
| CI/CD | AWS CodeBuild, AWS CodeDeploy, AWS CodePipeline | Azure DevOps, Github Enterprise |
Execution control | Amazon Simple Queue Service (SQS), Amazon Simple Notification Service (SNS) | Azure Service Bus, Azure Storage Queues | |
Multi-cloud | Amazon EKS Anywhere, Amazon ECS Anywhere, Chef Automate AWS OpsWorks, AWS Controllers for Kubernetes, AWS Bottlerocket, AWS Direct Connect | Azure Arc, Azure App Configuration, Azure Service Operator, Azure Container Instances, Hybrid Connections | |
Service mesh | AWS App Mesh, Amazon VPC, Istio on Amazon EKS, AWS App Mesh | Azure Service Fabric, Azure VPN Gateway, Istio in Azure Kubernetes Service | |
AI/ML | Cloud cost optimization | AWS Cost Optimization | Azure Advisor |
Conversational interface | Amazon Lex | Azure Conversational AI | |
Document understanding | Amazon Textract | Azure Form Recognizer | |
Image recognition | Amazon Rekognition Image | Azure Computer Vision | |
ML for structured data | Amazon SageMaker, Tensorflow on AWS, Amazon SageMaker Autopilot | AutoML in Azure ML Studio, Azure Data Science Virtual Machines, Azure Databricks, Azure AI Platform, Azure Cognitive Services, Azure Machine Learning, Azure Notebooks | |
Natural language processing | Amazon Comprehend | Azure Text Analytics | |
Personalization | Amazon Personalize | Azure Personalizer | |
Speech recognition | Amazon Transcribe, Amazon Polly | Azure Speech to Text, Azure Text to Speech | |
Translation | Amazon Translate | Azure Translator | |
Video intelligence | Amazon Rekognition Video | Azure Video Indexer | |
Compute | Core compute | Amazon Elastic Compute Cloud (EC2) P3, AWS UltraClusters, Amazon Elastic Compute Cloud (EC2), AWS Auto Scaling, Amazon EC2 Instance Connect, Amazon Elastic Block Store (EBS) | GPU Optimized VMs, Azure Virtual Machines, Azure Autoscale, Azure Managed Disks, Azure Bastion |
Dedicated VMs | Amazon EC2 Dedicated Host | Azure Dedicated Host | |
FaaS | AWS Lambda | Azure Functions Serverless Compute | |
Infrastructure modernization | SAP on AWS | SAP on Azure | |
PaaS | AWS Elastic Beanstalk | Azure App Service | |
VMware connectivity | VMware Cloud on AWS | Azure VMware Solution | |
Containers | CaaS | Amazon Elastic Kubernetes Service (EKS), Amazon Elastic Container Service (ECS) | Azure Kubernetes Service (AKS) |
Container registry | Amazon Elastic Container Registry (ECR) | Azure Container Registry | |
Container security | – | ||
Containers without infrastructure | AWS Fargate, AWS Lambda, AWS App Runner | Azure Container Instances | |
Gaming | Amazon GameLift | Azure for Gaming | |
Data analytics | Business intelligence | Amazon QuickSight | Microsoft Power BI |
Data discovery and metadata management | AWS Glue Data Catalog | Azure Purview, Azure Data Explorer | |
Data integration/ETL | Amazon AppFlow, Amazon Data Pipeline, AWS Glue | Azure Data Factory | |
Data warehouse | Amazon Athena, Amazon Redshift | Azure Synapse Analytics | |
Data wrangling | Amazon SageMaker Data Wrangler | Azure Data Factory | |
Messaging | Amazon Simple Notification Service (SNS), Amazon Simple Queueing Service (SQS) | Azure Service Bus Messaging | |
Open source processing | Amazon Elastic MapReduce (EMR), AWS Batch, AWS Glue | Azure Data Lake Analytics, HDInsight | |
Query service | Amazon Redshift Spectrum | Azure Synapse Analytics | |
Stream data ingest | Amazon Kinesis | Azure Event Hubs | |
Stream data processing | Amazon Kinesis | Azure Stream Analytics | |
Workflow orchestration | Amazon Data Pipeline, AWS Glue, Managed Workflows for Apache Airflow | Azure Data Factory | |
Database | Document data storage | Amazon DocumentDB, AWS DynamoDB, AWS AppSync | Azure Cosmos DB |
In-memory data store | Amazon ElastiCache | Azure Cache | |
NoSQL: Indexed | Amazon DynamoDB | Azure Cosmos DB | |
NoSQL: Key-value | Amazon DynamoDB | Azure Cosmos DB | |
RDBMS | Amazon Relational Database Service (RDS), Amazon Aurora | Azure SQL Database. Azure Database for MySQL, Azure Database for PostgreSQL | |
Relational | Amazon RDS for Oracle | Azure Oracle Database Enterprise Edition | |
Developer tools | Client libraries | AWS SDKs | Azure SDKs |
Cloud development IDE | AWS Toolkit for IntelliJ, AWS Toolkit for Visual Studio Code | Azure Toolkit for IntelliJ, Azure Tools for Visual Studio Code | |
Cloud-based IDE | AWS CloudShell | Azure Cloud Shell | |
Command-line interface (CLI) | AWS CLI | Azure CLI | |
Job scheduling | Amazon CloudWatch | Logic Apps | |
No-code | Amazon Honeycode | Microsoft Power Platform | |
Parallel task execution | Amazon Simple Queue Service (SQS), Amazon Simple Notification Service (SNS) | Azure Service Bus, Azure Storage Queues | |
PowerShell | AWS Tools for PowerShell | Azure Tools for PowerShell | |
Enterprise | Abuse prevention | AWS WAF CAPTCHA, AWS Fraud | Microsoft Dynamics Fraud |
Marketplace | AWS Marketplace | Azure Marketplace | |
ML workflows | Tensorflow on AWS | Azure DataBricks | |
Solutions catalog | AWS Service Catalog | Azure Custom Images, Azure API Management | |
Government services | Regulated services | AWS GovCloud | Azure Government |
Internet of Things | IoT platform | AWS IoT Core | Azure IoT Hub |
Management tools | API management | Amazon API Gateway | Azure API Management |
Cost management | AWS Budgets | Azure Cost Management | |
Deployment | AWS CloudFormation | Azure Deployment Manager | |
Media | AI | Amazon Rekognition Video | Azure Video Analyzer for Media |
Encoding | AWS Media Converter | Azure Media Services | |
Streaming | Live Streaming on AWS | Azure Media Services | |
Migration | Container migration | AWS App2Container | Azure Migrate |
Server migration | AWS Server Migration Service | Azure Migrate | |
SQL database migration | AWS Database Migration Service | Azure Database Migration Service | |
Storage migration | AWS Storage Gateway, AWS Snowball | Azure Migrate, Azure Data Box | |
Networking | CDN | Amazon CloudFront | Azure Content Delivery Network |
Connectivity management | Amazon Transit Gateway | Azure Virtual WAN | |
Domains and DNS | Amazon Route 53 | Azure DNS, Azure App Service | |
Load balancer | AWS Elastic Load Balancing | Azure Load Balancing | |
Network monitoring | AWS CloudWatch | Azure Network Watcher | |
Network security | AWS Virtual Private Network (VPN) | Azure Virtual Private Network (VPN) | |
Service mesh | AWS App Mesh | Azure Container Instances, Service Fabric Managed Clusters, Azure Kubernetes Service | |
Services | AWS Cloud Map | Consul on Azure | |
Virtual networks | Amazon VPC NAT instances, Amazon Virtual Private Cloud (VPC) | Azure NAT, Azure Virtual Network | |
Web application firewall | AWS WAF | Azure WAF | |
Operations | Audit logging | AWS CloudTrail | Azure Audit Logs |
Debugging | AWS X-Ray | Azure Monitor Application Insights Snapshot Debugger | |
Logging | Amazon CloudWatch Logs | Azure Monitor Logs | |
Monitoring | Amazon CloudWatch | Azure Monitor | |
Performance tracing | AWS X-Ray | Azure Monitor Application Insights Distributed Tracing | |
Profiling | Amazon CodeGuru Profiler | Azure Monitor Application Insights Profiler | |
Security and identity | Certificate management | AWS Certificate Manager | Azure Active Directory Certificate Authority |
CIAM | Amazon Cognito | Azure Active Directory B2C | |
Container security | Amazon Elastic Container Registry (ECR), Amazon ECR Image Scanning, Security in Amazon Elastic Container Service (ECS) | Azure Container Registry, Azure Defender for container registries, Container Security in Azure Security Center | |
Data loss prevention (DLP) | Amazon Macie | Azure Information Protection | |
Encryption | AWS Nitro Enclaves | Azure Confidential Computing | |
Hardware security module (HSM) | AWS CloudHSM | Azure Dedicated HSM | |
IAM | AWS Identity Services, Amazon Identity and Access Management, AWS Systems Manager, AWS Managed Microsoft AD | Azure Active Directory, Azure Identity Management, Azure Bastion | |
Resource monitoring | AWS Config, AWS OpsWorks | Azure Security Control, Azure Resource Manager | |
Secret management | AWS Secrets Manager | Azure Key Vault | |
Security administration | AWS Key Management Service (KMS) | Azure Key Vault | |
Security and risk management | Amazon Guard Duty, AWS Security Hub | Azure Security Center | |
Zero trust | – | Azure AD Conditional Access | |
Serverless | Build | AWS Simple Storage Service (S3), Amazon Cognito, AWS DynamoDB + AppSync | Azure Blob Storage, Azure Active Directory (AD), GitHub Pages, Static Web Apps, |
Engage | Amazon Pinpoint, Amazon Device Messaging (ADM), Amazon Simple Notification Service (SNS) | Azure Playfab, Azure Notification Hubs, Azure App Configuration | |
Event handling | AWS EventBridge | Azure Event Grid | |
Kubernetes platform | AWS Fargate | Azure Kubernetes Service | |
Mobile FaaS | AWS Lambda | Azure Functions Serverless Compute | |
Monetization | Amazon Publisher Services | Azure API Management | |
Release and monitor | AWS Device Farm | Azure App Center | |
Workflow orchestration | AWS Step Functions | Azure Logic Apps | |
Storage | Block storage | Amazon Elastic Block Store (EBS) | Azure Disk Storage |
File storage | Amazon Elastic File System (EFS) | Azure Disk Storage, Azure Files | |
Infrequently accessed object storage | Amazon S3 Glacier | Azure Archive Storage | |
Object storage | AWS Simple Storage Service (S3) | Azure Blob Storage |
Azure and AWS aren’t the only cloud storage and infrastructure providers available. Google Cloud is probably the best-known alternative. Depending on the extent of your needs, you may also wish to check out IBM Cloud, Oracle Cloud Infrastructure and the SAP Business Technology Platform.
If you already use other Oracle products, that may make the vendor more appealing as a cloud provider. For example, our review of Oracle NetSuite accounting software notes how easily it integrates with Oracle’s suite of business solutions, and for some companies, it’s simply more straightforward to have all services with one vendor.
Are you more concerned with securely saving files on the cloud than data crunching or software development? If so, check out our reviews of the best cloud storage and online backup services.
Sometimes you don’t know whether a product will work for you until you actually try it. Thankfully, Amazon and Microsoft both allow you to set up free accounts. These are great opportunities to determine which platform is better for your business.
With AWS, your amount of access will vary depending on the feature you want to test – for instance, you can get a two-month trial of one of the machine learning tools. Some functions, however, are free for 12 months, while others are free forever. Similarly with Azure, there are popular services you can have access to for free for a year, while dozens more remain free indefinitely.
So go out and give these two clouds a try and see which suits your needs better. If AWS isn’t for you, the features of Amazon Business may still be worth exploring. We’re pretty sure Microsoft won’t mind.
Nicole Fallon contributed to the writing and research in this article.