Microsoft Cloud Revenues Leap; Amazon is Still Way Out in Front
RENO, NV, October 29, 2014
New Q3 data from Synergy Research Group shows that Microsoft clearly has the highest growth rate among the leading cloud infrastructure service operators, while Amazon (AWS) remains the dominant cloud service provider. Microsoft grew its revenues by 136% on a rolling annualized basis, resulting in its worldwide market share growing to over 10% in Q3. AWS’s cloud revenues jumped again after a relatively soft second quarter, resulting in its market share nudging back up to 27%. It is notable that although AWS’s percentage growth rate may be substantially lower than Microsoft’s, in absolute terms AWS revenue growth over the past four quarters is greater than Microsoft’s total cloud infrastructure revenue over the same period - AWS remains in a league of its own for scale. Behind the two leaders IBM is ranked third largest cloud operator with a 7% market share, followed by Google, salesforce and Rackspace.
With most of the major operators having now released their earnings data for Q3, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) have now passed the $4 billion milestone, with trailing twelve-month revenues exceeding $14.5 billion. On a rolling annualized basis the market grew by 49%, but it is notable that all four leading operators grew more rapidly than that, resulting in all of them gaining market share.
“Given the level of competition in the market, Microsoft’s growth rate has been truly impressive, reflecting a strong corporate focus on cloud and huge ongoing investment levels” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “The other main feature of the Q3 market was the return to strong sequential revenue growth at AWS following a relatively weak second quarter. While prices continue to fall, Q3 did not see the huge pricing disconnect that caused AWS growth rate to falter in Q2.”
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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