Just a couple of years ago, the race was on for dominance in the cloud. While Amazon Web Services has always largely been the market share leader, other giants like Google, Microsoft, and Oracle were making strides in the space and aiming to dominate the cloud market. Has this race for dominance in the cloud continued on, or has a leader solidified their standing? Below, we will go through some of the top leaders in the cloud and how they have established themselves in the market.
Google and Microsoft Azure are the two largest cloud providers behind Amazon Web Services. Google Cloud makes up an estimated 8.5% of the market share and Microsoft Azure makes up an estimated 16.8% of the market share.
Azure’s last quarterly report showed a growth of 64%. While that number is significant, it is also a part of a downward growth trend Microsoft has experienced throughout the 2019 fiscal year. While Microsoft still has a strong holding on to the number two position in the cloud infrastructure market, this growth rate is impressive but not enough to launch them to surpass the number one spot. Most likely, we will continue to see Microsoft Azure and Google Cloud grow and work to differentiate themselves from AWS, rather than try to become the number one cloud infrastructure on the market.
Companies like IBM, Rackspace, Salesforce, and Oracle are not experiencing the levels of growth that Microsoft and AWS see quarter after quarter, but that does not make them insignificant players. Rather than trying to race for market share dominance in the cloud, these players are working on strengthening their niche offerings to capture small but strong segments in the market.
Amazon Web Services (AWS) has long been a dominant force in the cloud. AWS made up about 31.8% of the market share by the end of 2018, almost double the next runner up (Microsoft Azure). AWS revenue climbed to a whopping $7.7 Billion in Q1 of 2019, up over $2 Billion from the same time last year. While growth is at a slower rate, around 47% in 2019, this is to be expected given the vast chunk of the market share AWS holds.
AWS continues to dominate the cloud marketplace because it has a greater breadth of services than most of its competitors combined. This vast offering of services allows them to suit nearly any company’s cloud needs. AWS also had a nearly seven-year lead in developing its public cloud offering, which has only played to their advantage in streamlining their products.
AWS is able to offer credits to those looking to try AWS and is known for being much more developer-friendly than some of their competitors. This is not to say AWS is the right choice for every company, but for most companies, AWS is able to securely meet all business requirements in a cost-effective manner.
There is always room for competition, but it is not going to be easy to gain a lead over AWS at this point in the game. As AWS continues to release new offerings within the cloud and evolve to meet unique customer needs, they are going to persistently grow and dominate the market. This does not mean that Microsoft Azure, Google Cloud, or any number of other players won’t be able to grab a healthy chunk of the market share – it just means all-out dominance in the cloud space might not be written in the stars.
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