Cloud Boom Continues as Quarterly IaaS/PaaS Revenues Exceed $2B

RENO, NV, May 30, 2013

New data from Synergy Research Group shows that Q1 service revenues from IaaS and PaaS exceeded $2 billion, having grown by 56% from the first quarter of 2012. Amazon (AWS) remains in a league of its own with a 27% market share, while a group of IT heavyweights have so far failed to close the gap on the market leader despite an increasing number of service launches and marketing initiatives – Amazon’s share of the market for the whole of 2012 was also 27%.

Strong growth is being seen in all regions, though North America continues to account for well over half of the worldwide market. In Q1 APAC and EMEA accounted for 21% and 20% of revenues respectively, with the Latin American market remaining relatively small. Different players feature in the operator rankings in each region, though the regions do all share one feature – Amazon is the leader.

“While I cannot imagine Amazon losing its grip on the market, cloud services are growing at such a pace that all the lead players should be able to see strong growth over the next five years” said Synergy research group’s John Dinsdale. “Google and Microsoft are playing catch-up with relatively recent IaaS service launches, while a raft of telcos are also getting into the game. The success of IaaS and PaaS will also take away some growth opportunity from managed hosting and colocation, causing some specialists in those segments to diversify into cloud services.”