Cloud Market Growth Rate Nudges Up as Amazon and Microsoft Solidify Leadership

RENO, NV, October 29, 2020

New data from Synergy Research Group shows that Q3 enterprise spending on cloud infrastructure services were almost $33 billion, up 33% from the third quarter of 2019. Notably, the year-on-year growth rate for Q3 was higher than the 32% growth seen in the previous quarter, demonstrating the health of the market. Amazon and Microsoft continue to account for over half of the worldwide market, with Amazon market share remaining at its long-standing mark of around 33%, while Microsoft’s share was over 18%. Google, Alibaba and Tencent are all growing more rapidly than the overall market and are gaining market share. Together they account for 17% of the market. The other cloud providers in the top ten ranking are IBM, Salesforce, Oracle, NTT and SAP. In aggregate the top ten providers account for 80% of the worldwide market, with the remaining 20% coming from a long tail of small cloud providers or large companies with only a small position in the market.CIS Q320 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 $32.8 billion, with trailing twelve-month revenues reaching $119 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 35% in Q3. The dominance of the major cloud providers is even more pronounced in public cloud, where the top five control almost 80% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.

“While we were fully expecting continued strong growth in the market, the scale of the growth in Q3 was a little surprising. Total revenues were up by $2.5 billion from the previous quarter causing the year-on-year growth rate to nudge upwards, which is unusual for such a large market. It is quite clear that COVID-19 has provided an added boost to a market that was already developing rapidly,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “Meanwhile, the companies competing for a share of the market have settled into three camps. Amazon and Microsoft are in a league of their own, while others are either aggressively seeking to grow their position in the market or are more focused on specific services, geographies or customer groupings.”

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 tool, which enables easy access to complex data sets. Synergy’s CustomView ™ takes 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.