Story image

AWS leaves cloud infrastructure services competitors in its wake

04 May 2016

Amazon Web Services continued to dominate the cloud infrastructure services market in the first quarter of 2016 – leaving all the followers in its wake.

New data from Synergy Research Group shows AWS holds a dominant lead with 31% of wht worldwide market share for cloud infrastructure services.

The ‘big three’ followers – Microsoft, IBM and Google – combined, accounted for just 22% of the market, with the next 20 top ranked cloud providers, including big names such as Alibaba, CenturyLink, Fujitsu, HPE, NTT, Oracle, Rackspace, Salesforce and VMware, accounted for a combined 27%.

Synergy says based on the Q1 financial earnings data released by the major operators, it believes quarterly cloud infrastructure service revenues including IaaS, PaaS and private and hybrid cloud, have now ‘comfortably passed the US$7 billion milestone.

And while AWS accounts for the lion’s share, Synergy notes that there is good news for Microsoft and Google, which both saw growth rates of ‘well over 100%’, enabling them to slowly gain ground on AWS. Slower growth by IBM however dragged the average growth for the three companies down to 93%.

While the 20 cloud providers outside the top four are growing on average 41% per year, Synergy Research notes that given the market is growing at more than 50%, that actually means most of them are losing market share.

John Dinsdale, Synergy Research Group chief analyst and research director, says: “This is a market that is so big and is growing so rapidly that companies can be growing by 10-30% per year and might feel good about themselves, and yet they’d still be losing market share.

“The big question for them is whether or not they are building a sustainable and profitable business,” adds.

Dinsdale says building a sustainable and profitable business 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.

French cloud giant sets up shop in two APAC data centres
OVH Infrastructure has expanded its public cloud services in the Asia Pacific (APAC) market operating from two data centres within the region.
SecOps: Clear opportunities for powerful collaboration
If there’s one thing security and IT ops professionals should do this year, the words ‘team up’ should be top priority.
Data center colocation market to hit $90b in next five years
As data center services grow in popularity across enterprises large and small, the colocation market is seeing the benefits in market size.
Google doubles down on hybrid cloud strategy
CSP is a platform that aims to simplify building, running, and managing services both on-premise and in the cloud.
OVH launches public cloud down under
OVH Public Cloud services is expanding to Australia out of two data centres - one in Sydney and one in Singapore.
Huawei invests in cloud deployment for Singapore
The company says its new strategic investment reflects growing demand for cloud service solutions across Asia Pacific.
In ongoing cloud war, Google to acquire data migration specialist
Google is currently behind AWS and Microsoft in the cloud battle, and it would seem this play is an attempt to claw some ground back.
Enterprise cloud deployments being exploited by cybercriminals
A new report has revealed a concerning number of enterprises still believe security is the responsibility of the cloud service provider.