Lionel Sujay Vailshery
Research expert covering the consumer electronics industry
Launched in 2010, Azure is a private and public cloud computing platform created by Microsoft that is riding high on artificial intelligence (AI). Microsoft Azure solutions contain infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) offerings used for services, including AI, machine learning (ML), virtual computing, storage, networking, and analytics. As Azure's growth rate over time demonstrates, there is great demand for these services in organizations worldwide. However, the real game-changer is the recent collaboration between OpenAI and Microsoft Azure. This partnership is set to democratize access to advanced AI, a move that marks a significant step forward for both these companies.
Microsoft Azure products and OpenAI
As of 2024, the Azure cloud platform encompasses more than 2,800 AI and ML services and products. They are tailored for companies of all sizes, with some specific to industries, including healthcare, financial services, government, and retail. Accordingly, the Azure platform is a popular choice for businesses to leverage technology to achieve their goals. Almost 56 percent of organizations worldwide use Microsoft Azure for their cloud services.
Microsoft Azure's key solutions include data management, media services, machine learning and artificial intelligence (AI), developer tools, and Internet of Things (IoT) applications. To meet the diverse needs of its global customer base, Microsoft continually develops the Azure portfolio, especially with the introduction of Phi-3 models, representing the latest generation of small language models developed along with OpenAI.
The strategic alliance between OpenAI and Microsoft Azure is a game-changer in the realm of AI and cloud computing. By harnessing Azure's robust cloud infrastructure, OpenAI can accelerate the development and deployment of its state-of-the-art models. This collaboration opens the doors for customers to access a wide array of advanced AI models, including the highly sought-after GPT models like ChatGPT4.
Microsoft Azure is among the top global cloud providers
Microsoft Azure, Amazon Web Services, and Google Cloud lead the global cloud-computing market. These three hyperscale cloud providers are the leading players in the cloud infrastructure services market, with Microsoft accounting for approximately a quarter of the market. Notably, despite Microsoft entering the cloud business later than its main competitors, it managed to catch up quickly. Microsoft's strong position in enterprise IT, thanks to Windows OS and productivity tools, paved the way for Azure's success in software as a service (SaaS), notably with Office 365. Now with the addition of Copilot for Microsoft 365 the integration of AI-powered tools powered by Azure, has taken Microsoft a step further in sealing their lead in the operating systems market worldwide for PCs.
