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 Channel Futures

Cloud


A new Synergy Research Group study revealed Amazon Web Services remains larger than Microsoft IBM Google and Salesforcecom combined in the cloud infrastructure service market

AWS Dominates Cloud Infrastructure Service Market, Study Shows

  • Written by Dan Kobialka 1
  • April 27, 2015
A new Synergy Research Group study revealed that AWS continues to grow faster than the cloud infrastructure service market as a whole. Here's everything you need to know.

A new Synergy Research Group study revealed that Amazon Web Services (AWS) remains larger than Microsoft (MSFT), IBM (IBM), Google (GOOG) and Salesforce.com (CRM) combined in the cloud infrastructure service market.

AWS continues to grow faster than the cloud infrastructure service market as a whole, according to Synergy. The market intelligence firm said AWS’ market share increased 29 percent in the first quarter of this year; AWS previously reported $1.566 billion in net sales during the time frame, too.

“Importantly, AWS has remained extremely aggressive in investing in its network, new service development and pricing so that it has stayed ahead of its competition – despite its large scale. It has also been helped by strong market growth,” Synergy Chief Analyst John Dinsdale told Talkin’ Cloud. “Its main competitors started from a long way behind and are aggressively growing their cloud revenues, but AWS’s growth rate continues to meet or beat overall market growth rate [as] it stays ahead of the pack.”

In addition, Synergy reported that Microsoft recorded the highest revenue growth rate in the quarter, while IBM remained “the king of the private and hybrid services segment.”

Other study results included:

  • Synergy estimated that quarterly cloud infrastructure service revenues have surpassed $5 billion.
  • Twelve-month cloud infrastructure service revenues now exceed $17 billion, with the annual revenue growth rate running at around 45 percent.
  • Google is gaining cloud infrastructure service market share, Synergy said, but it remains just half the size of Microsoft in this sector.

Dinsdale noted that there are now six companies that control the cloud infrastructure service market – AWS, IBM, Microsoft, HP (HPQ), Cisco Systems (CSCO) and Salesforce. He pointed out that “all [of these companies] are able to claim leadership in different parts of the cloud market.”

Click here for Talkin’ Cloud’s Top 100 CSP list

Synergy found that Cisco had a clear lead in public cloud infrastructure, while HP was the leader in private cloud in the fourth quarter of 2014 as well. However, it also noted that both vendors saw their share of the total cloud market fall between the third and fourth quarters.

What are your thoughts on the cloud infrastructure service market? Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at dan.kobialka@penton.com.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Business Models Channel Research Cloud

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