Story image

Cloud boom continues as giants threaten small operators

01 May 18

New Q1 data from Synergy Research shows that spend on cloud infrastructure services jumped 51% from the first quarter of 2017, comfortably beating the growth rates achieved in the previous five quarters.

Market giant Amazon was a major contributing factor with the growth of its AWS division the highest achieved since late 2016.

AWS worldwide market share has held steady at around 33% for twelve quarters now, even as the market has almost tripled in size.

Overall, the cloud boom continues as market leaders Microsoft, Google and Alibaba all substantially grow their market shares, however, not at the expense of AWS.

It has been at the expense of the small to medium-sized cloud operators who have collectivity seen their market shares diminish, the report finds.

Meanwhile, IBM's market share has been relatively stable at around 8%, thanks primarily to its strong leadership in hosted private cloud services.

With most of the major cloud providers having now released their earnings data for Q1, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) have now reached almost $15 billion.

The Q1 growth rate of 51% compares with a full-year 2017 growth rate of 44% and a 2016 growth rate of 50%.

Public IaaS and PaaS services account for the bulk of the market and those grew by 56% in Q1.

In public cloud, the dominance of the top five providers is even more pronounced, as they control almost three quarters of the market.

John Dinsdale, a chief analyst and research director at Synergy Research Group, says cloud growth in the last two quarters has been quite exceptional.

“Normal market development cycles and the law of large numbers should result in growth rates that slowly diminish – and that is what we saw in late 2016 and through most of 2017,” he adds.

“But the growth rate jumped by three percentage points in Q4 and by another five in Q1. That is good news for the leading cloud providers, whose historically high levels of capex are helping to ensure that they are the main beneficiaries of that exceptional market growth.”

For nearly two decades, Synergy Research has provided quarterly market tracking and segmentation data on IT and cloud related markets. The firm uses an online database tool to access complex data sets ro report on market shares and forecasts.

In addition, Synergy uses CustomView, a tool that enables clients to receive ongoing quantitative market research that matches their internal, executive view of the markets they compete in.

52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.
How Fujitsu aims to tackle digitalisation and the data that comes with it
Fujitsu CELSIUS workstations aim to be the ideal platform for accelerating innovation and data-rich design.
QNAP launches a new hybrid structure NAS
"By combining AMD Ryzen processors with a hybrid storage structure and 10GbE SFP+ connectivity, the system packs performance into a compact 1U frame."
Ramping up security with next-gen firewalls
The classic firewall lacked the ability to distinguish between different kinds of web traffic.
Platform9 aims to allow enterprises to run Kubernetes instantly
Snapfish, HPE, and Juniper use Platform9’s hybrid cloud solution to deliver a modern cloud infrastructure-as-a-service experience.
Opinion: A data centre manager's Christmas wish list
In this time of merriment and cheer there is one thing everyone is not-so-secretly waiting for: Presents.
STT GDC to build hyperscale data centre in Singapore
ST Telemedia Global Data Centres (STT GDC) today unveiled ambitious plans for expansion with its largest data centre in Singapore to date.
Golden opportunities for enterprise e-waste reduction
E-waste is a hot topic in tech circles, and Park Place's EMEA MD believes there could be huge opportunities if data centres and enterprises improve their practices.