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Amazon Dominates the Cloud Market

Posted on 5.04.2016

Amazon Web Services (AWS) has a 31 percent worldwide market share, dwarfing its three biggest competitors combined which accounted for just 22 percent of the market (following by the next 20 top-ranked cloud providers for another 27 percent.

Amazon currently dwarfs its competition but Microsoft and Google are growing and at well over 100 percent in Q1. Outside of the big four, the next 20 cloud providers are growing at an average 41 percent per year, but in a market that is growing at over 50 percent that means that most of them are losing market share.

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"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."

With most of the major operators having now released their earnings data for Q1, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS, and private and hybrid cloud) have now comfortably passed the $7 billion milestone.

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