RENO, NV, December 11, 2012
New data from Synergy Research Group shows that service provider revenues from IaaS and PaaS topped $2.75 billion in the first half of the year, having grown by 65% from the same period last year. It is particularly noteworthy that IaaS and PaaS share of the total infrastructure market has grown from 6% in late 2010 to 12% currently (the total market comprising managed hosting, colocation, CDN/ADN, IaaS and PaaS). There is enormous potential for future IaaS growth as the managed hosting services market migrates to cloud-based service offerings.
Amazon continues to be a clear leader in IaaS with a 34% share of the worldwide market; it is also second ranked in PaaS behind salesforce.com, which accounts for 21% of the worldwide market. Meanwhile, managed hosting and colocation are very fragmented markets with a multitude of service providers. Rackspace maintains a narrow lead in managed hosting, followed closely by a slew of traditional telcos and IT service providers – none of which has more than a 5% market share. The chasing group includes Verizon, NTT, British Telecom, IBM, France Telecom-Orange, SingTel and China Telecom. Equinix is the clear leader in colocation with an 11% market share, but it too is followed by a long list of telcos, IT service providers and colocation specialists. Akamai and Level 3 lead the charge in CDN/ADN, together accounting for 44% of the total market.
“We are in the early days of a profound shift in the data center market towards cloud infrastructure services, which presents extremely exciting growth opportunities for emerging cloud providers and traditional service providers the world over” says Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “Amazon has clearly demonstrated first mover advantage and built a strong cloud provider position, driving the IaaS market and lighting a fire under traditional telcos which are seeking to play catch up, often via M&A and partnership activity.”
Synergy’s Cloud Infrastructure Services research provides quarterly market sizing and segmentation data, including operator revenues by segment and by region. Data is provided via Synergy’s uniquely flexible SIA database which enables rapid analysis and provides a range of graphic data presentation options. The research covers IaaS, PaaS, managed hosting, colocation and CDN/ADN.
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.
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