Amazon Bigger in IaaS Cloud Than Microsoft, Google & IBM Combined

The top four players dominate the cloud market through sheer weight, according to a report from Synergy Research Group.

Mitch Wagner, Executive Editor, Light Reading

November 1, 2016

3 Min Read
Amazon Bigger in IaaS Cloud Than Microsoft, Google & IBM Combined

Amazon is clobbering the competition in the public IaaS and PaaS markets, but Microsoft and Google are growing faster. And IBM is the leader in managed private cloud, according to Synergy Research Group.

Amazon Web Services Inc. still has 45% share of the worldwide public IaaS market, despite Microsoft Corp. (Nasdaq: MSFT) and Google (Nasdaq: GOOG) having much higher growth rates, according to a press release from Synergy Research Group Inc. this week. AWS is more than twice the size of the next three public IaaS providers combined.

Amazon also leads in the public PaaS market, over Inc. , Microsoft and IBM Corp. (NYSE: IBM), though competition is tighter for PaaS than IaaS, Synergy says.

IBM is market leader in managed private cloud, followed by Amazon, Rackspace and NTT, Synergy says.

Figure 1:

For IBM, cloud is an important part of what it calls "strategic imperatives" -- forward-looking technologies that IBM is relying on to drive future growth, even as slowing sales and revenues of IBM's legacy technologies drag the company down. Other strategic imperatives include analytics, mobile and security. Cloud revenue was $3.4 billion for IBM in the quarter ending Sept. 30, up 44% year-over-year. Overall revenue for IBM was $19.23 billion, down 0.3 percent year-over-year. (See Cloud Rises But Overall Revenue Down for IBM.)

For NTT's part, this month it announced a deal with Mirantis Inc. to use OpenStack to extend the NTT Enterprise Cloud into private OpenStack as a Service. (See NTT Taps Mirantis OpenStack for Private Cloud.)

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Well more than half the worldwide cloud market is controlled by the four big cloud providers -- Amazon, Microsoft, IBM and Google -- and they are growing their market share, Synergy says.

Quarterly cloud infrastructure revenues are well over $8 billion for Q3, and are growing at 50% per year, including public IaaS, public PaaS and managed private cloud. Public IaaS is the biggest of the three main cloud segments, but public PaaS is growing much more strongly, with database, IoT and analytics all growing by 100% or more per year.

Scale is the reason why Amazon, Microsoft and Google lead the pack, investing "huge amounts in their hyperscale data center infrastructure," John Dinsdale, chief analyst and research director at Synergy Research Group, said in a statement. Some second-tier players are also seeing particularly strong growth, including Alibaba, particularly in IaaS, and Oracle in PaaS.

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— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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