In an effort to make Azure more appealing to government agencies, Microsoft will soon allow government clients to run its software on their own servers.
The company is competing against Amazon in the space with the combination of its localised cloud product, Azure Stack and its version of Azure specifically tailored to the needs of governments, Azure Government.
Microsoft's new offering will be available during the middle of 2018 and will help it better compete for public sector contracts amongst agencies that require on-premise servers. This product has been designed to cater to embassies, military bases and even more remote operations such as on a submarine.
Amazon Web Services (AWS) is currently the leader in this market with a 32 per cent share of all business while Microsoft only controls 14 per cent. With the cloud computing market predicted to grow to $74.7bn in 2018, both companies are improving their offerings to attract a wider range of clients.
AWS has managed to take the lead in the public sector thanks in part to a number of high profile clients including the CIA though Microsoft has begun to play up its long-running relationships with governments around the world to encourage them to switch to its cloud services.
By offering government agencies the ability to utilise an on-premise version of its popular cloud services, Microsoft is allowing them to move their operations to the cloud while still remaining in control of sensitive data and information.
When the company's offering is released later in the year, it may convince more than a few governments and agencies to choose its cloud services over Amazon's.
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