‘Big 4’ Cloud Vendors Extending Market Lead
Amazon Web Services (AWS) remains the far and away market leader in public cloud, while it and the three tech giants that comprise the “Big 4” are increasing their lead on the remaining market competitors, according to new research.
The outcome of the battle for public cloud carries important implications for third-party technology services providers, who want to ensure they’re pursuing partnerships with vendors whose technologies and products will remain relevant in the future.
In aggregate, the Big 4 grew cloud infrastructure revenue by 68 percent during the quarter, while the next 20 vendors grew 41 percent.
“In a variety of ways Amazon and the other big three players have distanced themselves from the competition in this market and continue to widen the gap,” said John Dinsdale, a chief analyst and research director at Synergy Research Group.
“What marks them out as different is their global presence, marketing muscle, ability to fund huge investments in hyperscale data centers and, in most cases, a determination to succeed in the market,” he said. “The ranking of the next 20 largest cloud providers features some interesting companies, with Alibaba and Oracle growing particularly strongly, but they are all starting from a long way behind Google, which is itself growing by well over 100 percent per year and yet remains only a sixth the size of Amazon.”
Indeed, Google and its parent company, Alphabet Inc., announced personnel changes and huge new investments during the past year to increase its share of the public cloud market.
The Q2 results showed Google grew cloud infrastructure revenue by 162 percent, followed by Microsoft, which grew 100 percent.
Overall, Synergy estimates that cloud infrastructure revenues – which include Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and hosted private cloud – generated $8 billion in revenue during the quarter.
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