AWS Remains Dominant Despite Microsoft and Google Growth Surges

RENO, NV, February 3, 2016

New Q4 data from Synergy Research Group shows that Amazon Web Services (AWS) continues to dominate the cloud infrastructure services market, achieving a worldwide market share of over 31% in the quarter. Microsoft and Google have by far the highest growth rates among the market leaders but are making little impact on AWS, which continues to grow strongly and to increase its market share. IBM meanwhile continues to lead within the private and hybrid services segment. The four top-ranked companies all grew more strongly than the market as a whole and in aggregate account for over half of the worldwide market. For full-year 2015 AWS share of the worldwide market was 31%, followed by Microsoft (9%), IBM (7%), Google (4%) and Salesforce (4%). With most of the major operators having now released their earnings data for Q4, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) are now approaching the $7 billion milestone, with trailing twelve-month revenues exceeding $23 billion. Total 2015 revenues grew by 52% from the previous year.

“The big four cloud operators are continuing to run away with the market,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “The second tier of operators are either niche players, generalist IT service providers, or companies lacking the scale, focus and investment capabilities required to truly challenge the top four hyperscale cloud providers. This second tier includes Salesforce, Rackspace, Oracle, NTT, Fujitsu, Alibaba and HPE.”