Cloud Comparison

AWS vs Microsoft Azure

Independent comparison for enterprise buyers. Updated May 2026.

Quick verdict: Choose AWS for the broadest service catalogue, longest market track record, and the largest cloud ecosystem of partners and ISV solutions. Choose Microsoft Azure for organisations standardised on Microsoft, Active Directory, and Office 365, or for hybrid scenarios where on-premise Windows Server and Azure work together. The differentiator is anchor: AWS is the cloud-native default; Azure is the Microsoft-aligned default.

CriteriaAWSMicrosoft Azure
Rating4.5 / 5.0 (14,300 reviews)4.4 / 5.0 (9,800 reviews)
Market ShareApproximately 31% global IaaS/PaaSApproximately 25% global IaaS/PaaS
Regions33 regions, 105 availability zones60+ regions worldwide
ComputeEC2, Lambda, Fargate, ECS, EKSVirtual Machines, Functions, Container Apps, AKS
Object StorageS3Blob Storage
DatabaseRDS, Aurora, DynamoDB, RedshiftSQL Database, Cosmos DB, Synapse
AI/MLBedrock, SageMaker, QAzure OpenAI Service, Machine Learning, Copilot
IdentityIAM, IAM Identity CenterMicrosoft Entra ID (formerly Azure AD)
HybridOutposts, Snow familyAzure Stack HCI, Azure Arc

Feature comparison

AWS offers the broadest service catalogue of any cloud provider, with more than 200 services spanning compute, storage, databases, networking, analytics, AI/ML, security, IoT, and developer tools. AWS Bedrock provides managed access to foundation models from Anthropic, Meta, Mistral, Cohere, and Amazon. SageMaker remains the platform for custom model training and deployment. The breadth of the catalogue reflects the platform's age and ecosystem.

Microsoft Azure has built parity in core infrastructure services and leads in productivity, identity, and AI integration. Microsoft Entra ID is the de facto enterprise identity provider, and Azure OpenAI Service offers managed access to OpenAI models including GPT-4 and GPT-5 with enterprise data isolation. Azure's tight integration with Windows Server, Active Directory, SQL Server, and Microsoft 365 makes it the default cloud for Microsoft-aligned enterprises.

For compute, both clouds offer mature VM, container, and serverless options. AWS Lambda and Azure Functions are competitive on cold start, runtime support, and pricing. AWS Fargate and Azure Container Apps both abstract container infrastructure. EKS and AKS provide managed Kubernetes with similar capabilities, though AWS retains broader region availability.

For data and analytics, AWS Redshift and Azure Synapse Analytics serve similar warehouse roles. AWS Aurora and Azure SQL Database are mature managed relational databases. For real-time analytics, AWS Kinesis and Azure Stream Analytics handle streaming workloads. Snowflake and Databricks run on both platforms with similar performance characteristics.

For AI, both platforms offer foundation model access. Azure's exclusive enterprise relationship with OpenAI gives it an edge in customers wanting Azure-region-isolated OpenAI services. AWS Bedrock counters with Anthropic Claude, Meta Llama, and Mistral as managed services. Both are investing heavily in agentic AI platforms.

Pricing comparison

Direct pricing comparison is difficult because of region-specific rates, reservation discounts, savings plans, and enterprise discount programmes. List prices for comparable services typically vary by 5-15% in either direction. Both clouds offer reserved instances and savings plans with 30-72% discounts for committed usage. AWS Savings Plans and Azure Reservations are functionally similar.

Five-year total cost of ownership for a mid-size enterprise workload of approximately $1M annual run-rate: comparable within 10% before negotiation, with Microsoft Enterprise Agreement customers often achieving better effective rates on Azure. Egress costs remain a meaningful difference, with AWS S3 egress and Azure Blob egress priced similarly but accumulating into significant amounts for data-heavy workloads.

When to choose AWS

Choose AWS when you want the broadest service catalogue, when you need the deepest ISV ecosystem on a single cloud, when you operate in regions where AWS leads on availability, when your team prefers AWS's longer track record on production-scale services, or when you are cloud-native rather than Microsoft-aligned.

When to choose Microsoft Azure

Choose Microsoft Azure when your organisation is standardised on Microsoft 365 and Active Directory, when Azure OpenAI Service exclusive offerings matter, when hybrid scenarios with on-premise Windows Server are part of your roadmap, when you have a Microsoft Enterprise Agreement, or when you prefer integrated identity through Entra ID.

Alternatives to both

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Frequently Asked Questions

Is AWS or Azure bigger?
AWS retains the largest global IaaS and PaaS market share at approximately 31%, with Azure at approximately 25%. Azure is growing faster in enterprise accounts due to Microsoft Enterprise Agreement bundling. By revenue, AWS remains the largest cloud provider.
Which is cheaper, AWS or Azure?
List prices vary by 5-15% in either direction depending on the service and region. Effective pricing depends on reservation commitments, savings plans, Enterprise Agreement discounts, and egress patterns. Microsoft Enterprise Agreement customers often achieve better effective rates on Azure.
Which is better for AI workloads?
Both invest heavily. Azure OpenAI Service offers exclusive enterprise access to OpenAI models. AWS Bedrock counters with Anthropic Claude, Meta Llama, and Mistral. AWS SageMaker and Azure Machine Learning are competitive for custom training. Choice depends on which models matter and which ecosystem the team uses.
Can you run hybrid AWS or Azure?
Yes. AWS Outposts extends AWS services into customer data centres. Azure Stack HCI, Azure Arc, and Azure VMware Solution extend Azure into on-premise and other clouds. Azure's hybrid story is generally more mature given Microsoft's data centre heritage.
Which has more regions?
Microsoft Azure operates in more regions globally at 60+, while AWS focuses on fewer but larger regions with 33 regions and 105+ availability zones. AWS's region density supports higher fault tolerance per region; Azure's spread supports more localised data residency.
Last updated: May 2026
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