IaaS and PaaS service revenues go up and up, beat $2bn in first quarter

James has more than a decade of experience as a tech journalist, writer and editor, and served as Editor in Chief of TechForge Media between 2017 and 2021. James was named as one of the top 20 UK technology influencers by Tyto, and has also been cited by Onalytica, Feedspot and Zsah as an influential cloud computing writer.

Infrastructure as a service (IaaS) and platform as a service (PaaS) service revenues surpassed $2bn in the first quarter of 2013, according to the Synergy Research Group.

This number is up 56% from last year’s figure, providing yet more evidence of the increasing numbers in cloud computing.

And it will come as no surprise as to which company is leading the way in revenues. Amazon’s overall share of the market, according to the research, stands at a whopping 27% – this was exactly the same number for the whole of last year.

Synergy calls Amazon “in a league of its own”, and it’s hard to disagree based on the research. Salesforce.com, Microsoft, IBM and Google comprise the top five, but they appear mere drops in the ocean compared to the dominance of AWS:










So 2013’s results still show a clear market share for Amazon. But that may be about to change, if Google and Microsoft get their way with recent launches.

Last month Microsoft released Windows Azure Infrastructure Services, and promptly priced it in direct competition with AWS’ IaaS platform, whilst the search giant unveiled a widespread rollout of Google Compute Engine (GCE) at Google I/O. IBM, meanwhile, is looking towards the latest iteration of its OpenStack software as a carrot for customers to migrate more readily to its cloud service.

“Google and Microsoft are playing catch-up with relatively recent IaaS services launches,” commented John Dinsdale of the Synergy Research Group, adding: “The success of IaaS and PaaS will also take away some growth opportunity from managed hosting and collocation, causing some specialists in those segments to diversify into cloud services.”

Also examined were the geographical areas of growth, noting that whilst the EMEA (Europe, Middle East, Africa) and APAC (Asia Pacific) markets grew, the LATAM (Latin America) IaaS and PaaS sphere remains relatively small.

Similarly, the research also pointed out the increasing prevalence of telcos in the cloud service revenues biz, with NTT, AT&T and Verizon all featuring in the top 10.

With operators desperately trying to find ways to utilise their assets and restore monetary growth where the OTT players have scythed at their bottom line, cloud may be the knight in shining armour. But what do you think?

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