& cplSiteName &

AWS, Despite Slowdown, Reigns Over Cloud Market – Report

Scott Ferguson

While Amazon Web Services' growth is slowing, the company's public cloud platform still dominates the market and remains larger than all its nearest competitors combined.

Following two weeks of quarterly financial reports, Synergy Research has released its latest look at the overall global cloud market, which includes public infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), as well as hosted private cloud.

During the second quarter of this year, the cloud market reached about $11 billion in revenue, growing over 40% year-over-year. This type of rapid growth has buoyed nearly all the big cloud suppliers, but none have benefited more than AWS.

In terms of revenue, AWS controls about 34% of the overall cloud market. By comparison, Microsoft accounts for about 11% and Google at 5%.

(Source: Synergy Research)
(Source: Synergy Research)

Despite AWS being nearly three times as large as its closest rival, Synergy found that it continues to grow its revenues faster than the overall market, and has continued to gain market share despite its already oversized role in public cloud.

"Some of the numbers are actually pretty spectacular. The year-on-year market growth rate is nudging down as we expected in such a large market, but it remains at comfortably over 40% and AWS alone generated revenue growth of $1.2 billion over the last four quarters," John Dinsdale, chief analyst and research director at Synergy, wrote in the July 27 report.

The news of AWS's cloud dominance comes as Amazon released its second-quarter financial results Thursday, which showed its cloud division with net sales of $4.1 billion, which is up from the $2.9 billion it booked a year ago. However, as Enterprise Cloud News Editor Mitch Wagner wrote, these are not the growth rates AWS saw a year ago. (See AWS Engine Pulls the Amazon Train in Q2.)

The other major player in the worldwide cloud market is IBM , which had about 8% market share, thanks to hosted private cloud services. And Rackspace also gets a mention by Synergy as a prominent player in hosted private cloud.

Keep up with the latest enterprise cloud news and insights. Sign up for the weekly Enterprise Cloud News newsletter.

Although they don't rank in the top four, Oracle and Alibaba Cloud also made some headway in the report. The two companies reported the highest growth rates of any of the other providers, and Alibaba now ranks fourth in IaaS thanks to growth in China and expansion abroad.

The losers in this race, however, are the smaller cloud providers, which collectively watched their market share shrink by about 5% as the hyperscale companies gobble up more and more of the market, which should continue to increase at an annual growth rate of about 25%.

"The increasing dominance of hyperscale players continues to play out, with all four leading companies having cause to celebrate," Dinsdale wrote.

Related posts:

— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Scott Ferguson
From its roots in industrial farm machinery and other equipment, John Deere has always looked for a technological edge. About 20 years ago, it was GPS and then 4G LTE. Now it's turning its attention to AI, machine learning and IoT.
Artificial intelligence and automation will become more integral to the enterprise, and 90% of all apps will have integrated AI capabilities by 2020, according to Oracle CEO Mark Hurd.
IBM is now offering access to Nvidia's Tesla V100 GPUs through its cloud offerings to help accelerate AI, HPC and other high-throughput workloads.
CIO Rhonda Gass is spearheading an effort to bring more automation and IoT to the factories making Stanley Black & Decker tools and other equipment.
Workday is looking to build out its machine learning and artificial intelligence capabilities with the acquisition of startup SkipFlag.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 17, 2018, Chicago, Illinois
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
NFV Is Down but Not Out
Iain Morris, News Editor, 5/22/2018
Trump Denies ZTE Deal, Faces Senate Backlash
Dan Jones, Mobile Editor, 5/22/2018
What VeloCloud Cost VMware
Phil Harvey, US News Editor, 5/21/2018
5G in the USA: A Post-BCE Update
Dan Jones, Mobile Editor, 5/23/2018
Vanquished in Video, Verizon Admits OTT Defeat
Mari Silbey, Senior Editor, Cable/Video, 5/23/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed