Latest cloud infrastructure research shows yet more AWS dominance


This is not the most surprising news you will hear today: a note published by Synergy Research argues Amazon Web Services’ (AWS) domination of the cloud infrastructure market continues. The Seattle giant held 31% of the worldwide market in 2015, the researchers argue, with Microsoft (9%), IBM (7%) and Google (4%) trailing.

Despite the yawning gap between the market leader and the rest, all four companies continue to grow ahead of the overall rate, as Synergy chief analyst John Dinsdale argues the big four are “continuing to run away with the market.” The second tier vendors, which include Salesforce, Rackspace, Oracle, Alibaba, and Fujitsu among others, are what the research firm claims as either niche players, general IT service providers, or companies which lack the scale or focus to really challenge the top vendors.

Picture credit: Synergy Research Group

As was reported in July with the last figures, AWS, Microsoft, IBM, and Google continue to control more than half of the overall cloud infrastructure market. Microsoft and Google have the highest growth rates among the market leaders, at 124% and 108% year on year respectively, but are making a minimal dent in AWS’ lead, with 63% yearly growth.

Synergy argues quarterly cloud infrastructure service revenues, including IaaS, PaaS, private and hybrid cloud, are approaching $7 billion, with trailing 12 month revenues at more than $23 billion.

Opinions on the IaaS market, which has shown a relatively unchanging growth pattern for the past couple of years, range from those who think it’s a three horse race to those who think the race has long been run. Kelly Stirman, VP strategy at MongoDB, told this publication in July there will only be Amazon, Google and Microsoft – as everyone else will eventually run out of money.

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mustafa ali
15 Feb 2016, 10:02 a.m.

I agree with the findings of the study but then it's actually not very surprising as AWS has one massive advantage over most other players in this market. Their business model, whether by design or default (I personally think it's more by default) is in effect a fully commodotised IT Service.

For example, all organisations, including Government Departments that want to be able to provide Digital Services to the public, need an OMNI Channel presence. Therefore they have to stand up IT capabilities to provide a 'catalogue', 'shopping cart', payment engine/facility etc. They also need to have in place technology which is truly OMNI channel, i.e. IaaS and PaaS.
AWS already has these in situ. This is why they (AWS) are able to exploit their technology solution and in effect provide a fairly mature and robust commoditised service.

So whilst many organisations want to be in a similar situation utilising IaaS, PaaS and possibly a Private Cloud solution, they are also aware of the potential costs and risks associated with making potentially significant changes to their IT solutions and infrastructures and the damage to their customer relations should they get it wrong. AWS have already applied any lessons learned from their initial launch and established their credentials and capability in this field.