Amazon, Alibaba, Google and Microsoft top public cloud
Amazon, Alibaba, Google and Microsoft bolster position in public cloud market
12 November 2019 | Natalie Bannerman
Amazon, Alibaba, Google and Microsoft accounted for 72% of the global market for IaaS and PaaS in Q3 of 2019.
According to new figures from Synergy Research, this spike in market share is up from 57% at the beginning of 2016. During this period Amazon’s global market share has remained at around 40% while Microsoft, Google and Alibaba have all steadily gained share.Following behind the four market leaders is Salesforce, IBM, Oracle, Tencent, Sinnet-AWS and a large group of companies with minor market shares.
In terms of revenue, global spending on public IaaS and PaaS reached $20 billion in Q3, representing over 80% of the total cloud infrastructure services. The remaining 20% of the market in made up of osted and managed private cloud services, where IBM is the market leader and companies like Rackspace and OVH follow closely behind.
“It has taken just eight quarters for the public IaaS and PaaS markets to double in size and our forecast shows them doubling in size again over the next eleven quarters,” said John Dinsdale, a chief analyst at Synergy Research Group. “It is particularly noteworthy that as spending on public cloud services continues to grow rapidly, the top four cloud providers are strengthening their grip on the market. Some of the companies outside the top four are actually growing at a reasonable pace, but the reality is that in aggregate they continue to lose ground to the market leaders. Outside of some niche services and geographic regions, this is a game where scale of operations, geographic footprint and global brand are key competitive advantages.”
As a result of the recently released earnings for Q3, Synergy estimates that total cloud infrastructure service revenues were well over $24 billion for the quarter, with revenues for the last four quarters now reaching $89 billion.
The total market grew by 37% from the third quarter of 2018. The public IaaS and PaaS part of the market continues to grow more rapidly than private cloud services, with Q3 growth coming in at 40%. Geographically, the cloud market continues to grow strongly in all regions of the world.
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