Synergy Research Group reports that AWS’s market share of the public cloud services market is over 40% [1]. The three next-largest cloud providers, that is, Microsoft, Google, and IBM are growing at the expense of smaller players and have increased their market share by almost 5% during 2016. Together, they hold 23% of the public IaaS and PaaS market. The market shares are as follows:
Thus, the big continue to grow at the expense of the small and the (shrinking) 18% that is left for the smaller players means tough competition.
Synergy estimates that quarterly public cloud infrastructure service revenues have reached over $7 billion and continue to grow at almost 50% per year. Adding managed private cloud services on top of that, quarterly cloud revenues are over $9 billion. IBM and Rackspace lead in the managed private cloud space.
According to Synergy, AWS's leadership position requires [1]:
Leaders in different cloud segments include [2]:
From Q4 2015 to Q3 2016, total spend on cloud infrastructure hardware and software exceeded $65 billion. Spend on private clouds accounted for over half of the total but spend on public cloud grew much more rapidly. According to IDC, Cisco and Huawei increased their market share in the cloud infrastructure segment, whereas Dell and HPE dropped slightly [3]. Hyperscale datacenters are expected to generate additional growth.
Synergy believes that major barriers to cloud adoption are now almost a thing of the past, especially on the public cloud side [2]. Cloud technologies are generating massive revenues for technology vendors and cloud service providers, and there are still many years of strong growth ahead.
Sources
[1] Microsoft, Google and IBM Public Cloud Surge is at Expense of Smaller Providers, https://www.srgresearch.com/articles/microsoft-google-and-ibm-charge-public-cloud-expense-smaller-providers
[2] 2016 Review Shows $148 billion Cloud Market Growing at 25% Annually, https://www.srgresearch.com/articles/2016-review-shows-148-billion-cloud-market-growing-25-annually
[3] Cisco and Huawei Gained Market Share in Cloud Infrastructure, http://edge-of-cloud.blogspot.fi/2017/01/cisco-and-huawei-gained-market-share-in.html
- AWS: 40%
- Microsoft, Google, and IBM: 23%
- Next 10 (e.g., Alibaba and Oracle): 19%
- Other cloud providers: 18%
Thus, the big continue to grow at the expense of the small and the (shrinking) 18% that is left for the smaller players means tough competition.
Synergy estimates that quarterly public cloud infrastructure service revenues have reached over $7 billion and continue to grow at almost 50% per year. Adding managed private cloud services on top of that, quarterly cloud revenues are over $9 billion. IBM and Rackspace lead in the managed private cloud space.
According to Synergy, AWS's leadership position requires [1]:
- Huge ongoing investments in infrastructure
- Continued expansion in the range of cloud services offered
- Strong credibility with the large enterprise segment
- Consistently strong execution
- Wholehearted and long-term backing of senior management
Leaders in different cloud segments include [2]:
- Amazon and Microsoft in IaaS & PaaS
- IBM and Rackspace in hosted private cloud
- Microsoft and Salesforce in Enterprise SaaS
- Cisco and Citrix in UCaaS (Unified Communications as-a-Service)
- Cisco and HPE in public cloud infrastructure hardware and software
- HPE and Dell EMC in private cloud infrastructure hardware and software
From Q4 2015 to Q3 2016, total spend on cloud infrastructure hardware and software exceeded $65 billion. Spend on private clouds accounted for over half of the total but spend on public cloud grew much more rapidly. According to IDC, Cisco and Huawei increased their market share in the cloud infrastructure segment, whereas Dell and HPE dropped slightly [3]. Hyperscale datacenters are expected to generate additional growth.
Synergy believes that major barriers to cloud adoption are now almost a thing of the past, especially on the public cloud side [2]. Cloud technologies are generating massive revenues for technology vendors and cloud service providers, and there are still many years of strong growth ahead.
Sources
[1] Microsoft, Google and IBM Public Cloud Surge is at Expense of Smaller Providers, https://www.srgresearch.com/articles/microsoft-google-and-ibm-charge-public-cloud-expense-smaller-providers
[2] 2016 Review Shows $148 billion Cloud Market Growing at 25% Annually, https://www.srgresearch.com/articles/2016-review-shows-148-billion-cloud-market-growing-25-annually
[3] Cisco and Huawei Gained Market Share in Cloud Infrastructure, http://edge-of-cloud.blogspot.fi/2017/01/cisco-and-huawei-gained-market-share-in.html
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