Alibaba - 7.7% 4. Vendor share from the public cloud services IaaS market worldwide 2015-2019. All Rights Reserved, This is a BETA experience. Over the past few years, we have advised our clients that a successful enterprise digital transformation must include at the center a cloud-first strategy—be it public, private, hybrid or multi-cloud for most if not all workload deployments—in order to better compete and be more agile. But market share isn’t everything. S… Public Cloud Market Share: Potential Industry Shifts. A market consolidation that will continue through 2019, driven by the high growth rate of the top providers, which experienced aggregate growth of 39% from 2017 to … According to the Stamford, Connecticut-based research firm, the worldwide infrastructure as a service (IaaS) market grew 31.3% in 2018 reaching $32.4 billion, up from $24.7 billion in 2017 with Amazon Web Services (AWS) once again being the top vendor, owning nearly half of the overall public-cloud infrastructure market (47.8%), leading by a wide margin Microsoft (15.5%), Alibaba (7.7%), Google (4%), and IBM (1.8%). Further reading on Google’s quarterly reporting: When we originally published this blog last year, we included a market share breakdown from analyst Canalys, which reported AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent. Jean Baptiste "Jeb" Su is Principal Analyst and Technology Futurist at Atherton Technology Research, a global strategy and intelligence consultancy firm located in Silicon Valley, advising clients plan, build and deliver successful go-to-market strategies. Amazon Web Services revenue grew 41% in the first quarter, AWS revenue approaches $8 billion in Q1, up 41 percent compared to last year, Azure revenue remains a mystery, but cloud services continue to drive Microsoft forward. For Q1 2019, the company reported sales of $7.7 billion, showing consistent growth and the largest of any of the cloud service providers. In November, a Goldman Sachs report stated that AWS, Azure, Google Cloud, and Alibaba Cloud made up 56% of the total cloud market, with that projected to grow to 84% this year. Across the business, Amazon’s growth rates are slowing down — which perhaps is all that can be expected at their mammoth size. A passionate of all things tech, Jeb earned a BSc (Hns) in Computing for Real-Time Systems from Bristol Polytechnic (UK) and built his first computer at the age of 7. Here are a few headlines on Microsoft’s reporting that caught our attention: Like Microsoft, Google avoided reporting specific revenue numbers for its cloud business yet again. AWS has been a huge contributor to this growth. This fact frustrates many pundits as it simply can’t be compared directly to AWS, and inevitably raises eyebrows about how Azure is really doing. Microsoft keeps hiding Azure revenue numbers, but why? A recent report put the company at 47% of the market, with the next-closest competitor as Azure at 22%. In 2019, AWS had a 33% market share, Microsoft 16%, and Google was in third place with 8%. By comparison, Gartner estimated Azure's market share was 7.1%, worth $1.5 billion. In terms of potential market shifts for 2019 and beyond, keep these trends and developments in mind, according to ChannelE2E: AWS had first-mover advantage with MSPs, but Microsoft is finally working in a more formalized and consistent way with MSPs in multiple cloud areas. (Around $614 billion in total for 2019 is the latest projection we have seen from the prognosticators at Gartner.) Amazon Web Services (AWS) is leading the market during the same period, accounting for 32 percent of total spending. Public cloud services market share in Russia 2019, by segment Public IT cloud services: five-year CAGR 2018-2022, by segment Global public IT cloud services revenue 2016-2019, by segment The worldwide cloud infrastructure services market reached a record high in Q4 2019, as spending grew 37% to over US$30 billion. A market consolidation that will continue through 2019, driven by the high growth rate of the top providers, which experienced aggregate growth of 39% from 2017 to 2018 compared with the more modest growth of 11% for all the other public-cloud infrastructure providers during the same period including Oracle Cloud, OVH, and Rackspace. That's only part of the story AWS still dominates the IaaS market, but Gartner's new segment combining infrastructure and platform services is a better cloud indicator and shows AWS capturing 50% of the market. The worldwide cloud infrastructure services market reached a record high in Q4 2019, as spending grew 37% to over US$30 billion. Google Cloud Platform revenue is included in Google’s “other” revenue category, alongside G Suite, Google Play, and hardware such as Nest. Amazon Web Services (AWS) remained the dominant cloud service provider in Q4 2019, accounting for 32% of total spend. Amazon reported Amazon Web Services (AWS) sales of $7.7 billion, compared to $5.44 billion at this time last year. Market tracker data from IDC for the second half of 2019 also puts AWS in a clear lead, with 13.2 percent of the public cloud services market, narrowly ahead of Microsoft with 11.7 percent. Jean Baptiste "Jeb" Su is Principal Analyst and Technology Futurist at Atherton Technology Research, a global strategy and intelligence consultancy firm located in…. In its most recent earnings statement for Q3 of 2019, AWS reported revenues of $9 billion. Microsoft - 17% 3. (Photo by Chesnot), —more than $37 billion for its latest fiscal year ending in March—. What Microsoft reported for Azure specifically is the growth rate: 73%. Is Microsoft Becoming a Better Cloud Stock Than Amazon? However, their profit margins are increasing, giving investors a boon of $7.09 earnings per share compared to the projected $4.72. Amazon Web Service (AWS) is among the leading cloud computing service providers, and here’s a look at how AWS (AMZN) continues to dominate … However, despite being the clear cloud infrastructure leader with 2018 revenue reaching $15.5 billion, up nearly 27%, Amazon's AWS lost a little bit of market share—down 1.6 percentage point—to its three main competitors (Microsoft, Alibaba, and Google). To get a sense of the AWS vs Azure vs Google Cloud market share breakdown, let’s take a look at what each cloud provider’s reports shared. Amazon owns nearly half of the world's public-cloud infrastructure market. Microsoft Azure is growing at a faster clip than AWS and recent earnings reports … In 2019, the global market value was $272 billion and was projected to continue increasing with a compound annual growth rate of 18 percent. Note: a version of this post was originally published in April 2018. That category reported revenue of $5.45 billion for the quarter, up 25% from the same quarter last year when it was $4.25 billion. Worldwide IaaS public-cloud services market share, 2017-2018 (in millions of U.S. dollars). The top 5 cloud infrastructure providers accounted for nearly 80% of the global market in 2018. Microsoft trailed behind in … AWS vs. Azure vs. Google: Market Share. AWS holds substantial market share in public cloud, with the analyst ranking it the fourth largest infrastructure services provider. In 2019, they reported an overall growth in the cloud infrastructure market of 42%. IBM - 1.8% 6. The main key takeaway from Gartner's latest annual report on the public-cloud computing infrastructure market, published earlier this week, is that its adoption trend is not slowing down—au contraire. AWS captures 45% of worldwide IaaS revenue. Amazon AWS — 47%; Microsoft Azure — 22%; Google Cloud — 7%; Alibaba — 8%; All Others — 16%; On the surface, those numbers just look like Amazon is still running away with all the cloud hosting candy. Although the latest massive cloud data breach at the financial institution has been raising serious questions about privacy and cloud security—which might give pause to the cloud-only trend—we believe that this is just temporary, allowing both enterprises and cloud infrastructure providers to review their security strategies before resuming cloud deployments. When we originally published this blog in 2018, we included a market share breakdown from analyst Canalys, which reported AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent. More about Amazon Web Services vs. Azure vs. Google cloud market share. Public cloud adoption is increasing and private cloud adoption is declining, according to the “2019 State of the Cloud” report from IT asset management provider Flexera.Also, the report revealed that Amazon Web Services (AWS) is the top choice among public cloud services, followed by Microsoft Azure and Google Cloud Platform. Ultimately, it seems clear that in the case of AWS vs Azure vs Google Cloud market share — AWS still has the lead. One of the reasons for this transition from bare metal to the cloud is cybersecurity, which nearly two-thirds of organizations see as their greatest challenge. Perhaps this time next year will report revenue numbers broken out and we’ll be able to say for sure. Amazon didn't quantify the higher investment, but said it … Not to be outdone, the cloud business units of Microsoft (Azure) and Google (Compute Engine) also posted strong revenue growth last year for their infrastructure services, at $5 billion (+60.9%) and $1.3 billion (+60.2%), respectively. (Photo by Chesnot). Seller and User Statistics. With that said, it will be interesting to see how the actual numbers play out, especially as Google positions itself for multi-cloud and Azure continues rapid growth rates. This time last year, the Azure growth rate was reported at 93%. AWS holds a third (33.6%) of the market according to the IDC tracker, with Microsoft a clear second (18%) and Google (4.9%), Alibaba (4.6%) and IBM (4.1%) fighting for third place. However, Microsoft did not specify what that growth actually represents. AWS - 47.8% 2. AWS is particularly dominant. Google Cloud Revenues: CEO Sundar Pichai Dodges Question, Alphabet Stock Drops on Disappointing Google Revenue, Google’s Q1 means cloud revenue run rate still AWOL, Google Cloud is the single-largest driver of headcount growth at Google, Your Sale Dies When People Stop Scrolling, Why Being Anywhere and Everywhere Drives the Smartest Consumer Strategies Today, Pedalling Backwards: choosing the wrong Ecommerce Platform, The Fall of Giants — Lessons in Complacency, Social Capital heralds new model for unicorn IPOs, If You’re A Facebook User, You’re Also a Research Subject, Big Brands Take a Stand in the Face of the Death of George Floyd. Amazon Web Services (AWS) remained the dominant cloud service provider in Q4 2019, accounting for 32% of total spend. AWS remains far in the lead for now. The report shows AWS far, far in the lead with 47% of the market projected for this year, with Azure and Google trailing at 22% and 8% market share, respectively. For Gartner, Alibaba's exponential growth was driven by the build-out of a large ecosystem of managed service providers (MSPs) and independent software vendors (ISVs) adding value-add services on top of its infrastructure, and by aggressively investing in research and development—more than $37 billion for its latest fiscal year ending in March—especially compared with other hyper-scale public-cloud infrastructure providers. Only those providers who invest capital expenditure in building out data centers at scale across multiple regions will succeed and continue to capture market share. AWS vs. Azure market share 2018. According to a Gartner report, Amazon pulled in an estimated $20 billion in IaaS cloud revenue in 2019, leading with a 45% market share. AWS closed 2019 on a $36 billion run rate, growing from $7.43 billion in in its first report in January to $9 billion in earnings for its most recent earnings report in October. Microsoft Azure increased its share to 18% from 15% in the same period in 2018. In terms of the overall market, SaaS continues to lead, commanding almost two thirds (63.6%) of the total, ahead of IaaS (21%) and PaaS (15.4%). 2018 vs. 2019 Market Share When we originally published this blog last year, we included a market share breakdown from analyst Canalys, which reported AWS … As a result, the AWS services are by far the most evolved and most functionality-rich.”. 1 position in the IaaS market in 2019, followed by Microsoft, Alibaba, Google and Tencent. In media commentary, AWS’s numbers seem to speak for themselves: While Amazon breaks out revenue from AWS separately, Microsoft has a more nebulous “commercial cloud business” — which includes not only Azure, but Office 365, Dynamics 365, and other segments of the Productivity and Business Processes Division. AWS sees 2019 as an investment year, as it ramps its technology buildout as well as add sales personnel. A Closer Look at the Public Cloud Services Market. This study is a perfect blend of qualitative and quantifiable information highlighting key market developments, industry and competitors’ challenges in gap analysis and new opportunities and may be trending in the Global Cloud … Google - 10% (approximate) 4. New numbers from Synergy Research Group show AWS’ share of market revenue climbed to about 35 percent in the fourth quarter of 2018, with Microsoft’s Azure business growing the … The comprehensive research ranks the largest suppliers of software and IT services (SITS) in the UK market between April 2018 and 31 March 2019. You may opt-out by, Principal Analyst and Technology Futurist at Atherton Research, billion, with Amazon Web Services (AWS) once again owning nearly half of the overall public-cloud infrastructure market, says Gartner. AWS. —in order to better compete and be more agile, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice. Oracle, Alibaba Cloud and IBM trail as niche players. In its 2019 IaaS worldwide Magic Quadrant, Gartner marks AWS, Microsoft and Google as IaaS leaders. Q4 2019 earnings are in for the "big three" cloud providers and you know what that means – it’s time for an AWS vs. Azure vs. Google Cloud market share comparison. Public Cloud Market Share In terms of revenue, Amazon Web Services dominates the public cloud market with revenue growing at 35% in Q3 of 2019. Microsoft - 15.5% 3. AWS revenue grew 41% in the first quarter — at this time last year, that number was 49%. A New Research Published by JCMR on the Global Cloud Computing Services Market (COVID 19 Version) in various regions to produce more than 200+ page reports. But without specifics, it’s hard to say what this means. Offering rich feature functionality across the cloud technology stack will be the ticket to success, as well.”. By provider, AWS had the biggest sales gain with a $2.3 billion YOY increase, but Canalys reports Azure and Google Cloud with bigger percentage increases. According to Google and Alphabet CFO Ruth Porat, “Google Cloud Platform remains one of the fastest growing businesses in Alphabet with strong customer momentum reflected in particular in demand for our compute and data analytics products”. One of the most important factors when it … Prior to joining Atherton Research, Jeb was an award-winning journalist covering for 25+ years the Business of Technology (B2B and B2C) since the early 1990s at IDG Communications, Vivendi Universal Publishing, LVMH, Roularta Media and most recently FORBES. AWS only continues to grow, and bolster the retail giant time after time. "Despite strong growth across the board, the cloud market’s consolidation favors the large and dominant providers, with smaller and niche providers losing share,” said Sid Nag, research vice president at Gartner. Others have made their own estimates. The share that AWS has of the whole pie depends on the assumptions in the larger models. Q1 earnings are in for the ‘big three’ cloud providers and you know what that means — it’s time for an AWS vs Azure vs Google Cloud market share comparison. Microsoft reported that the commercial cloud business grew 41% in the first three months of 2019, to $9.6 billion. Parent company Alphabet reported $36.34 billion in revenue for the quarter, up 17% from $31.15 billion for the same quarter last year. The worldwide infrastructure as a service (IaaS) market grew 37.3% in 2019 to total $44.5 billion, up from $32.4 billion in 2018, according to Gartner, Inc. Amazon retained the No. In 2018, the worldwide infrastructure as a service (IaaS) market grew 31.3% in 2018 reaching $32.4... [+] billion, with Amazon Web Services (AWS) once again owning nearly half of the overall public-cloud infrastructure market, says Gartner. According to Amazon’s quarterly sales results, AWS saw $25.7 billion in revenue in 2018, the highest among all cloud providers. Others - 23.2% Add in PaaS, according to IDC, and the numbers look more like this (suggesting that Microsoft has a hefty PaaS business, given that it devours a much bigger slice of the cloud market with PaaS + IaaS vs. just IaaS): 1. According to a 2020 report from Synergy Research Group, "Amazon growth continued to closely mirror overall market growth so it maintained its 33% share of the worldwide [cloud] market. At this stage of the year, it is too early to establish the Azure vs. AWS market share in 2018. Bezos has said, “AWS had the unusual advantage of a seven-year head start before facing like-minded competition. No business can grow forever at triple digits or even double digits, and we pointed this out three years ago as it relates to AWS. AWS is the de facto market champion, accounting for 47.8% of the 2018 IaaS public cloud services market share, according to Gartner analysis released Monday. Originally published at www.parkmycloud.com on April 30, 2019. This year they report an overall growth in the cloud infrastructure market of 42%. Based on Gartner's calculations at the end of 2016, Amazon, had a 44.2% share of the IaaS market worth $9.7 billion. Microsoft Azure increased its share to 18% from 15% in the same period in 2018. Since its inception, AWS has been the dominant cloud provider in terms of market share, and 2018 was no exception. —down 1.6 percentage point—to its three main competitors (Microsoft, Alibaba, and Google). Supposedly, analysts say that Azure is growing at a faster rate than AWS was at a similar size, but without specific numbers, it’s hard to say what this actually means. “This is an indication that scalability matters when it comes to the public cloud IaaS business. IBM Cloud (formerly SoftLayer) also lost a tiny bit of market share, favoring a strategy to provide multi-cloud services (IBM Cloud Private) on top of the other major public-cloud infrastructure providers (Azure, AWS, Google Cloud Platform or GCP). In 2018, all the top five IaaS providers saw double-digit revenue growth with Chinese e-commerce giant Alibaba leading the pack with a record 92.6% growth and annual sales of its Alibaba Cloud infrastructure business unit (also known as Aliyun) reaching $1.3 billion. AWS vs. Microsoft Azure will be about sales scale, AI, multi-cloud realities. Google - 4.0% 5. Over the last couple of years, online retail culture has evolved rapidly, and … It also boasted a 47% annual growth. This quarter, AWS revenue makes up 13% of total Amazon sales, up from 10% in the fourth quarter. AWS IaaS market share 2019 45% Detailed statistics. Another interesting, but not surprising, trend in 2018, was that the top five IaaS providers accounted for nearly 80% of the global public-cloud infrastructure market (76.8%), up from less than 73% in 2017. And with nearly $190 billion of liquid reserves and more than $87 billion in net income just last year, Alibaba has certainly the financial capability to continue this trend and aggressively invest in its global expansion. Public Cloud Market Share in 2019. Let’s take a look at all three providers side-by-side to see where they stand. Some, including Capital One, has even pushed further to become a cloud-only virtual enterprise, migrating their data center infrastructure to the cloud. IBM - 7% (approximate) 5. © 2020 Forbes Media LLC. It has been completely rewritten and updated for 2019. How big is AWS’s revenue? After reviewing the fiscal earnings report for 2019 and the most recent quarterly report from June for the ‘big three’ cloud providers, we thought it was time to take a closer look at the Alibaba Cloud market share.Looking at the numbers, it’s obvious that AWS is still number one overall, but other cloud service providers are not trailing far behind. AWS - 33% 2. Our anecdotal experience talking to cloud customers often finds that true, and it says something that Microsoft and Google aren’t breaking down their cloud numbers just yet. Depending on whoyou believe, IaaS public cloud market share breaks down as follows, based on 2018 revenue: 1.