Despite slowing growth, Amazon Web Services still holds a dominant position in the cloud infrastructure services industry.
This is the conclusion of Synergy Research Group’s latest data, which tracks trends in cloud computing and other IT areas. Synergy calculated the market shares for the top cloud infrastructure providers in the second quarter 2017. This was despite signs that AWS’ growth may be slowing down.
AWS currently holds a 34 percent market share, while Microsoft Azure, runner-up, has less than a quarter of that, with just 11 percent.
Following closely are IBM with an 8 percent market share (which Synergy attributes in part to its private cloud practice) and Google Cloud Platform with a 5 percent market share.
[Click on the image to see a larger view. Synergy noted that Microsoft and Google both made significant progress in the public cloud space over the past year — Microsoft reported a 97 per cent year-over-year rise in Azure revenues in its most recent financial report, but they have not been sufficient to surpass AWS.
According to research firm, “Microsoft & Google have nearly doubled their quarterly revenues from Q2 2016 and both have increased substantially their market share; however, market leader AWS continues to grow its revenues faster than the overall market, so it has also increased its share despite having a larger scale.”
Synergy projects that the global cloud infrastructure services market has increased by 40% year-over-year. According to its most recent quarterly earnings report, AWS grew 42 percent year-over-year.
This is AWS’ lowest year over-year revenue growth, but its solid lead and consistent double-digit revenue growth make this very difficult to challenge.
John Dinsdale, Synergy Chief Analyst, stated that while Microsoft Azure and Google Cloud Platform have doubled in size respectively, IBM continues to be the dominant host private cloud provider and AWS is still three times larger than its closest competitor. “Some of these numbers are actually quite remarkable. Although the year-on-year market growth rate is not as high as we expected, it is still comfortably above 40%. AWS alone has generated revenue growth of $1.2 million over the past four quarters.