In a recent report to clients, Morgan Stanley analyst Keith Weiss estimated Microsoft’s 2020 security revenue at $5 billion. Amazon nearly has the security revenue of $300 billion from annual sales.
Amazon.com (AMZN) and Microsoft (MSFT) are uniquely designed to grab market share in cybersecurity as most of the business workloads are transferred to cloud computing services. But they are waving in different directions. Microsoft’s focus is on becoming a bigger player in cybersecurity through aggressive acquisition, while Amazon’s priority is the adoption of cloud computing.
Microsoft provides the best products that compete with others, whereas Amazon provides basic things.
Microsoft has established a sizable growth in cybersecurity businesses. Using its cloud-based Office 365 productivity tools, it has a wide range of security products. The major competitors include cybersecurity firms such as Proofpoint (PFPT), Splunk (SPLK), CrowdStrike Holdings (CRWD), Okta (OKTA), Netskope, and others. Analysts approve that Microsoft has become much more competitive in recent years, making improvements in endpoint, email, mobile device management, etc.
But Amazon’s sale in cybersecurity is still unrevealed. AWS’s new ‘Detective’ security platform collects log data from customers and helps them analyze, investigate, and identify the source of security issues.
Microsoft constantly acquired three Israeli startups to push into cybersecurity drastically. It also pushes into IoT security. Rather than buying large cybersecurity incumbents, Microsoft will likely make investments in tuck-ins. The core revenue of Microsoft security is generated from email and endpoint security.
In the endpoint market, Microsoft’s competitors are Symantec, CrowdStrike, etc. It is also becoming competitive in identity and access management vs. Okta, Ping Identity (PING), and many. These tools verify the identity of computer network users by managing the usernames, passwords, and access policies.
The competitors of Sentinel services (SIEM) in security information and event management are, Splunk, Exabeam, and others.
Amazon Web Services, being the biggest cloud computing service announces intensified competition vs. Microsoft and Alphabet’s (GOOGL) Google. Developing database, security, and other software, and adding plug-in software, AWS aims to be a comprehensive solution for large companies.
Amazon makes use of the cooperative approach rather than a competitive one. Other than Microsoft, Amazon will be more open to third-party integration. As an unusual tactic, it follows a ‘coopetition model’, which considers the ways in which synergy can be created by partnering with competitors. That is, if you’re worth adding value, innovative, and make people move to the cloud by making the cloud safer, you won’t be driven out.
