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Amazon Continues Dominating Cloud Infrastructure Market

Amazon Web Services continues to dominate the cloud computing infrastructure market, although Microsoft is catching up with its Azure offering.

A new report by Gartner found that the worldwide market for infrastructure as a service (IaaS) public cloud services grew 29.5 per cent with a revenue of US$23.58 billion in 2017, increasing from 2016’s $18.213 billion. The top four vendors – Amazon, Microsoft, Alibaba and Google – represented 73 per cent of the market, with Amazon holding a little more than half of the market share.

“The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organisations and as cloud availability expands into new regions and countries,” said Sid Nag, research director at Gartner.

On the second spot, Microsoft took home a $3.13 billion in revenue in 2017, a 98 per cent growth from the previous year’s $1.579 billion. This growth is expected to continue after the company’s latest quarter, which saw the revenue from Azure public cloud service increasing by 85 per cent from the same period a year ago.

Alibaba and Google also saw a significant growth of 63 per cent and 56 per cent respectively. Gartner attributed Alibaba’s rise to its investment in research and development.

“This reflects a fundamental change in what and how organisations are consuming technology,” said Nag.

“Some legacy infrastructure offerings, such as IUS, are seeing lower and slower uptake that impacts the combined IaaS and IUS market… Additionally, a groundswell of demand for cloud-skilled personnel is forcing technology providers to change how they compete to meet this exploding demand.”