This is the sort of story that could be told in two charts, but since those charts cannot be published, I'll do the best I can. According to the new Gartner(s it) Magic Quadrant report on cloud infrastructure-as-a-service, (subscription required) Amazon(s amzn) Web Services retains its usual top slot, but it has new company at the top: Microsoft(s msft) is the only other company in the top quadrant with Amazon Web Services. That shows the software giant coming on strong since adding IaaS capabilities to its once Platform-as-a-Service-focused cloud.
Normally, I don't care too much for this sort of thing, but Gartner analyst Lydia Leong is so thorough and fair that it's important to pay attention to what she and her team finds. And this year they found Microsoft's Azure cloud making huge strides both in terms of its vision (the X axis) and ability to execute (the Y axis.)
Microsoft ranks #2, albeit a distant #2 to AWS
The report cites Microsoft's "brand, existing customer relationships, history of running global-class consumer internet properties, deep investments in engineering and aggressive road map." Microsoft is second when it comes to IaaS market share "albeit a distant second" to Amazon.
On the cautionary side, the authors point out that Azure infrastructure services are still wet behind the ears and Microsoft remains in catch-up mode vis-a-vis many Amazon capabilities, but nonetheless Scott Guthrie, the Microsoft EVP in charge of that roadmap will be able to talk about Microsoft's progress and remaining challenges at Structure in a few weeks.
For AWS, Gartner cited its huge range of services and user base from small startups building new web apps to enterprise applications, its multiple availability zones and its partner network. Weaknesses include the complexity of purchasing services separately, something Amazon CTO Werner Vogels can discuss at Structure. Other providers often bundle similar services that Amazon offers a la carte.
And AWS still "does not include enterprise-grade support by default," according to the authors. That could remain an issue if it does not change and as more big companies weigh cloud options.
Google does well on debut; IBM makes strides
Other highlights: Google gets props for its new public cloud, which became broadly available in March, so Google didn't even make the report last year. IBM(s ibm) Softlayer also showed huge improvement compared to Softlayer-less IBM which was a laggard in last year's report.
Also in the quadrant showing strong vision and ability to execute (but below AWS and Microsoft in both categories) were CenturyLink(s ctl) (now with Tier 3 aboard); CSC(s csc), which ranked second after AWS last year; and Verizon(s vz) Terremark which is building an ambitious public cloud from scratch.