Amazon Dominates Public IaaS and Ahead in PaaS; IBM Leads in Private Cloud
RENO, NV, October 30, 2016
New Q3 data from Synergy Research Group shows that Amazon Web Services (AWS) still has a 45% share of the worldwide public IaaS market, despite Microsoft and Google having much higher growth rates. Amazon remains more than twice the size of the next three public IaaS providers combined. Competition is tighter in the public PaaS market but Amazon still has a big lead over Salesforce, Microsoft and IBM. In the managed private cloud segment IBM is the market leader, followed by Amazon, Rackspace and NTT. In aggregate the big four cloud providers – Amazon, Microsoft, IBM and Google – continue to control well over half of the worldwide market and all continue to grow their market share.
With most of the major operators having now released their earnings data for Q3, Synergy estimates that quarterly cloud infrastructure service revenues (including public IaaS, public PaaS and managed private cloud) have now reached well over $8 billion and continue to grow at 50% per year. While public IaaS is the biggest of the three main cloud segments, public PaaS is growing much more strongly. The database, IoT and analytics sub-segments within PaaS are all growing by 100% or more per year.
“Scale is the name of the game, especially in the public cloud markets,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “Amazon, Microsoft and Google continue to invest huge amounts in their hyperscale data center infrastructure, and all three have recently expanded their data center footprints and also announced plans to open up more geographic regions in the coming months. This scale is the prime reason why they are able to gain market share and pressure smaller players into consolidation or refocusing their cloud activities. Some tier 2 players are looking to buck the trend and at least some are seeing particularly strong growth, including Alibaba (particularly in IaaS) and Oracle (in PaaS).”
About Synergy Research Group
Synergy Research Group, now part of TechInsights, delivers quarterly analyses of global IT and Cloud markets, offering detailed breakouts of vendor revenues and shipments by segment and region. Market shares and forecasts are provided through Synergy Interactive Analysis (SIA™) — the industry's only fully proprietary SaaS platform purpose-built for market share and forecasting analytics.
For more than 25 years, Synergy has been a trusted source of quantitative research and market intelligence across emerging communications and technology sectors. By combining syndicated research with specialized consulting, we deliver actionable intelligence to marketing and strategy executives worldwide.
A trusted source of accurate market data, Synergy is cited by industry leaders as well as leading financial, business, and trade publications such as The Economist, The New York Times, The Wall Street Journal, United States Federal Reserve Board, NPR, Forbes, Bloomberg, Financial Times, Bank of England, Fortune, and The Guardian.
About TechInsights
Regarded as the most trusted source of actionable, in-depth intelligence related to semiconductor innovation and surrounding markets, TechInsights’ content informs decision makers and professionals whose success depends on accurate knowledge of the semiconductor industry—past, present, or future.
Over 650 companies and 100,000 users access the TechInsights Platform, the world’s largest vertically integrated collection of unmatched reverse engineering, teardown, and market analysis in the semiconductor industry. This collection includes detailed circuit analysis, imagery, semiconductor process flows, device teardowns, illustrations, costing and pricing information, forecasts, market analysis, and expert commentary. TechInsights’ customers include the most successful technology companies who rely on TechInsights’ analysis to make informed business, design, and product decisions faster and with greater confidence. For more information, visit www.techinsights.com.
Subscriptions: sales@srgresearch.com
Press inquiries: heather.gallo@techinsights.com