Amazon, Microsoft & Google Grab the Big Numbers – But Rest of Cloud Market Still Grows by 27%

RENO, NV, October 28, 2021

New data from Synergy Research Group shows that Q3 enterprise spending on cloud infrastructure services passed the $45 billion mark, up 37% from the third quarter of 2020. Amazon, Microsoft and Google continue to attract well over half of worldwide cloud spending, with Q3 market shares of 33%, 20% and 10% respectively. With growth rates that are higher than the overall market, their share of worldwide revenues continues to inch upwards. However, other cloud providers are still continuing to achieve strong growth in cloud revenues, despite the prominence of the big three US companies. The next ten largest cloud providers achieved 28% year-on-year revenue growth, while the long tail of medium-to-small cloud providers grew by 25%.CIS Q321 With most of the major cloud providers having now released their earnings data for Q3, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $45.4 billion, with trailing twelve-month revenues reaching $164 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 39% in Q3. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three control 70% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.

“Given their scale, ever-expanding worldwide presence and impressive revenue growth rates, it is understandable that Amazon, Microsoft and Google grab the most attention for their cloud activities. However, that makes it easy to overlook the fact that other cloud providers generated $17 billion in the quarter, a figure which grew by 27% from last year,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “By any standards a $17 billion market growing at such a rate is an attractive proposition for many service providers and their suppliers. Clearly there are challenges with the big three companies lurking in the background, so the name of the game is not competing with them head on. Providing companies are smart about targeting the right applications and customer groups, cloud can provide a broad and exciting range of growth opportunities for them.”

About Synergy Research Group

Synergy provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region. Market shares and forecasts are provided via Synergy’s uniquely designed online database SIA ™, which enables easy access to complex data sets. Synergy’s Competitive Matrix ™ and CustomView ™ take this research capability one step further, enabling our clients to receive on-going quantitative market research that matches their internal, executive view of the market segments they compete in.

Synergy Research Group helps marketing and strategic decision makers around the world via its syndicated market research programs and custom consulting projects. For nearly two decades, Synergy has been a trusted source for quantitative research and market intelligence. Synergy is a strategic partner of TeleGeography.

To speak to an analyst or to find out how to receive a copy of a Synergy report, please contact sales@srgresearch.com or 775-852-3330 extension 101.