Azure vs AWS: An in-depth comparison

For most businesses, cloud infrastructure has become the backbone of their business operations. By migrating digital infrastructure to the cloud, companies can ensure greater continuity, minimise operational risks, and optimise costs.

The two biggest cloud-based systems are Microsoft Azure and Amazon Web Services (AWS). Which one works best for your business will depend on your current infrastructure and where you want to take your business. By the end of this article, you’ll know which option to choose.

Table of contents

1. What is Microsoft Azure?
2. What is AWS?
3. Azure vs AWS: what’s the difference
4. Azure and AWS pricing structure
5. AWS vs Azure: What’s right for your business?
6. Need help with Microsoft Azure and AWS?

What is Microsoft Azure?

Azure is a Microsoft cloud service. It encompasses core services such as storage, networking, analytics, AI, and security. But its biggest USP is how it links up with Microsoft’s other products. So, if you’re already utilising Microsoft 365, for example, then Azure will feel like a natural fit. Azure is also an excellent option for hybrid environments, making it ideal if you still want to keep on-premises servers running alongside your cloud setup.

Licensing is another big win. If you’re already paying for other Microsoft licences, Azure Hybrid Benefit lets you carry them over. This helps you significantly cut costs compared to starting from scratch. The Carlsberg Group, for example, reported savings of 7-10%. If you’re already signed up to a Microsoft Enterprise Agreement, you can combine your Microsoft 365 and Azure bills, making billing much more streamlined.

Identity management is another area where Azure stands out. With Entra ID (formerly Azure Active Directory), you can manage users, groups, and security in one place. As it integrates natively with Azure, you don’t need to build custom code or workarounds, which saves on time and development costs.

What is AWS?

AWS is Amazon’s cloud platform. It has been around the longest, dating back to 2006, and has the largest market share. AWS’s market share of 30 per cent in the second quarter of 2025 is way ahead of Azure at 20 per cent, although the gap is slowly closing.

Amazon's cloud technology covers everything from infrastructure to databases to machine learning, and it also has plenty of additional services. Some of these are very specialised, such as AWS Cost Anomaly Detection for tracking unexpected changes in cloud spending. While many of the more niche services won’t apply to your business, if they do, then they’re already built and ready to go.

On top of that, one of AWS’s biggest advantages is its global infrastructure. It currently has many Availability Zones (clusters of data centres designed to improve resilience and uptime). For businesses with international customers that depend on cloud-based IT services, this matters as it means they can host applications closer to their customers, reducing latency and increasing performance.

It’s also worth noting that AWS utilises its own AI services to power products like Alexa. This shows that the technology isn’t just built for customers, and is trusted by Amazon itself at a massive scale.

Azure vs AWS: what’s the difference

At a high level, the two are very similar. Both have storage, networking, security, AI, and analytics capabilities, but there are a few key differences worth pointing out:

• Integration: Azure ties straight into Microsoft products, whereas AWS is more vendor-neutral.
• Hybrid setups: Azure is explicitly built with hybrid in mind, making it easier to manage hybrid environments. AWS offers hybrid options, too, but configuration can be more complex.
• Licensing: Azure lets you reuse Windows licences (Hybrid Benefit) for more streamlined billing.
• Service range: AWS has the broadest catalogue, especially niche tools.
• Data centres: AWS still leads with the most data centres globally, but Azure is catching up fast, with two in the UK versus AWS’s one.
• AI: Azure has Microsoft Copilot, while AWS uses its own AI, such as Alexa. Both also integrate OpenAI technology.
• Cost: AWS often looks cheaper on paper. If you're an organisation already using Microsoft services, Azure may provide better overall value.
• Maturity: AWS is a more mature platform with a broader service ecosystem, but Azure’s rapid growth and Microsoft integration make adoption easier for many organisations.

Azure and AWS pricing structure

It’s a bit tricky to give a definitive breakdown on pricing because the cost to your business is complex and highly workload-dependent. This is why IT decision-makers often struggle with side-by-side comparisons.

That said, cloud costs aren’t just about headline pricing. Things like egress charges, over-provisioning, and hidden extras can all add up. This is where working with experts like Texaport makes a real difference. We guide businesses through all the details, helping to avoid unnecessary spending and make sure you’re only paying for what you actually need.

To keep it simple, here’s a quick breakdown. We’ve also included the pricing calculator for each.

Azure pricing models

• Pay-as-you-go: Similar flexibility to AWS, with the same risks of fluctuating costs.
• Reserved VM instances: Discounts for long-term commitments, again with less flexibility.
• Savings plans: Commit to a specific hourly expenditure on eligible services for a certain period. More flexible and perfect for evolving workloads.
• Azure Hybrid Benefit: A major cost-saver for businesses already paying for Microsoft licences, since you can carry them over instead of repurchasing.
• Enterprise agreements: Let you roll Microsoft 365 and Azure into a single bill, simplifying management and sometimes unlocking extra discounts.

For SMEs already invested in Microsoft, Azure’s structure can be more cost-effective in the long run. The Hybrid Benefit alone can cut licensing costs by up to 7–10% (as seen in case studies like Carlsberg).

Visit the Microsoft Azure Pricing Calculator for an estimate tailored to your workloads.

AWS pricing models

• Pay-as-you-go: Billed on actual usage, giving flexibility but also making costs unpredictable if workloads suddenly spike.
• Reserved instances: Commit to 1–3 years for lower rates. This reduces costs but locks you into specific capacity, which can be risky if your needs change.
• Free tier: Useful for testing or very small workloads, but limited in scope and not practical for most SMEs.

AWS is attractive for businesses that want lower upfront costs and flexibility, but without close monitoring, it’s easy to overspend, especially with variable workloads.

Check out the AWS Pricing Calculator to get an estimate for your business.

AWS vs Azure: What’s right for your business?

So, which one is right for you? This will depend on your current setup and priorities.

Azure could be the better pick if:

• You already run Microsoft 365, Dynamics 365, or Windows Server.
• You want to reduce costs with Azure Hybrid Benefit.
• Hybrid cloud (on-prem + cloud) is important.
• Identity and security via Entra ID matter to you.
• You want access to Microsoft’s AI developments, such as Copilot.

AWS might make more sense if:

• You need very specific, niche services that aren’t available on Azure.
• You have global customers and need the widest data centre coverage.
• You want access to a bigger pool of AWS-skilled talent.
• Cost is the top concern, and if you’re not already using Microsoft.

For enterprises already investing in Microsoft 365, Azure’s integration benefits make it an excellent choice. Realistically, both Azure and AWS will have most of, if not everything, you need. Plus, both will continue investing in AI, security, and infrastructure.

Need help with Microsoft Azure and AWS?

It’s a big decision, but you don’t have to make it alone. At Texaport, we’ve helped many businesses pick the right cloud setup for their needs with our managed cloud services. We’re certified experts in Azure and highly trained in AWS adoption. So, whichever service you require, we’ll help you put your best foot forward and set your business up for the future.

Contact us today to discuss your cloud strategy.