The Big Four Cloud Providers are Leaving the Rest of the Market Behind
RENO, NV, July 24, 2015
New Q2 data from Synergy Research Group shows that in aggregate Amazon Web Services (AWS), Microsoft, IBM and Google control well over half of the worldwide cloud infrastructure service market. Their combined market share rose to 54% in the latest quarter compared with 46% in Q2 2014 and 41% in Q2 2013. While their year-on-year revenue growth rate averaged 84% in Q2, the rest of the market only grew by 33%. Consequently each of the big four cloud providers increased their share of the worldwide market in Q2, with AWS maintaining its clear number one ranking with a 29% market share.
With most of the major operators having now released their earnings data for Q2, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) are now approaching $6 billion, while trailing twelve-month revenues are close to $20 billion. North America continues to account for over half of the worldwide market, followed by the EMEA and APAC regions.
“The cloud infrastructure services market is quite clearly bifurcating with a widening gap between the big four cloud providers and the rest of the service provider community,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “Developing the necessary global hyperscale data center infrastructure along with the required marketing and operations support is simply beyond the reach of all but a very small number of players. This is not going to change. The good news for the plethora of small-to-medium-sized cloud providers is that there does remain a wealth of opportunity for those that are focused on specific market niches or local geographic areas.”
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.
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