NEWS
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The “big four” still rule the cloud as market growth surpasses 50%
The cloud isn’t all about the “big four” providers of Amazon Web Services, Microsoft, Google and IBM. After the top four, the next twenty cloud firms are growing at an average of 41 percent per year, even as they lose market share, according to a new report from Synergy Research Group.
That’s because the overall market for cloud infrastructure services (including IaaS, PaaS, private and hybrid) is growing at a rate of fifty percent a year, with quarterly cloud revenues having already “comfortably passed” $7 billion.
AWS retains its position at the top of the tree with a 31 percent share of the world’s market for cloud infrastructure services, recording 57 percent year-over-year growth. The next three, Microsoft, Google and IBM, control a combined 22 percent of the market, with the latter showing very strong growth and Microsoft and Google seeing their cloud revenues grow by over 100 percent on an annualized basis. As for the next twenty cloud companies, they control 27 percent of the overall cloud infrastructure market.
“This is a market that is so big and is growing so rapidly that companies can be growing by 10-30 percent per year and might feel good about themselves and yet they’d still be losing market share,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “The big question for them is whether or not they are building a sustainable and profitable business. This can be done by focusing on specific regions or specific services, but the bulk of the market demands huge scale, a broad footprint, very deep pockets and a long-term corporate focus.”
Included in the next twenty are Alibaba Group Holding Ltd., CenturyLink, Inc., Hewlett-Packard Enterprise, Fujitsu, Rackspace Inc., Salesforce.com, Inc., and VMware Inc. Meanwhile, other smaller companies outside the top 24 still manage to account for almost 20 percent of the global cloud market, showing growth of 30 percent. Growth rates are fairly consistent across all the world’s regions, which means the U.S. still represents about half of the overall cloud market.
Synergy published research last year showing that infrastructure services are just one part of a much larger cloud market, which includes the Cisco Systems Ltd.-led cloud infrastructure hardware market.
Main image credit: Yuri_B via pixabay
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