- IT consulting firm Gartner just released its latest cloud infrastructure market share report.
- Amazon Web Services still led with 45% market share as of the end of 2019, while Microsoft and other challengers made modest gains.
- Amazon is “leaps and bounds ahead,” but Microsoft and Google are “formidable foes” and “catching up,” Gartner analyst Sid Nag said, particularly as cloud customers increasingly use services from multiple cloud providers.
- Are you a Microsoft or Amazon Web Services employee? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (firstname.lastname@example.org).
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Amazon Web Services maintains a significant hold on the public cloud market, but its dominance waned slightly between 2018 and 2019 as challengers including Microsoft and Google made modest gains in market share, according to Gartner’s latest cloud infrastructure market analysis.
Gartner’s “[Infrastructure as a Service] Public Cloud Services Market” is generally considered a definitive measure of infrastructure market share for cloud providers. While this research is usually released in the summer, Gartner analyzes data from the previous two full years, meaning the rankings are current as of the end of 2019.
Amazon Web Services led the market with 45% market share, according to Gartner, which estimated the company’s cloud infrastructure revenue at nearly $20 billion for the year. Amazon’s cloud market share fell slightly from 47.9% in 2018.
Gartner cloud analyst Sid Nag told Business Insider Amazon is still “leaps and bounds ahead” of competitors, and its slight decline is mostly is an “artifact of market maturity,” meaning it’s hard to show the same tremendous growth rate it did in prior years as its revenue base grows.
With that said, Nag said Microsoft and Google are “formidable foes” and are catching up, particularly as cloud customers increasingly use services from multiple cloud providers. More than 80 percent of organizations, Nag said, have adopted or will adopt this multicloud approach by the end of 2020.
Microsoft maintained the No. 2 spot and its public cloud market share according to Gartner rose to 17.9% in 2019 from 15.6% in 2018. Microsoft doesn’t break out revenue for its Azure cloud business, but Gartner estimates the company’s cloud infrastructure revenue was about $8 billion in 2019.
Alibaba’s market share jumped to 9.1% in 2019, up from 7.7% in 2018, and reached more than $4 billion in estimated 2019 cloud infrastructure revenue. Google’s market share rose to 5.3% in 2019 from 4.1% in 2018 with nearly $2.4 billion in estimated 2019 cloud infrastructure revenue.
Tencent clinched the No. 5 biggest cloud infrastructure provider spot with 2.8% of the market in 2019, up from 1.9% in 2018, knocking IBM down into the “others” category of smaller cloud providers that make up about 20% of the market combined. IBM had 1.8% market share in 2018, down from 1.9% in 2017.
Gartner is changing the way it tracks the cloud market. It’s moving away from treating cloud infrastructure as a separate market from the so-called “platform as a service” segment, and combining both into a single “cloud infrastructure and platform services” market report, which Nag said better reflects the industry.
Gartner expects to soon release the firm’s first cloud infrastructure and platform services “magic quadrant,” its signature series of market research reports.
In their most recent quarters, Amazon reported $10.81 billion in total cloud revenue, Microsoft reported $13.37 billion in revenue for what it calls its Intelligent Cloud business in which it groups in Azure and a bunch of other products, and Google reported more than $3 billion in Google Cloud revenue.
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