AWS continues to dominate cloud services market

By:
James Pearce
Published on:

Amazon's cloud division maintained 40% share of the market, while Microsoft, Google and IBM all grew their share in 2016

Amazon Web Services continues to dominate the cloud services market place, while rivals such as Microsoft, Google and IBM are gaining ground at the expense of smaller players.

According to Synergy Research Group, AWS maintained its 40% market share in 2016, while the next three biggest providers (Microsoft, Google and IBM) saw their combined share grow by 5% to around 23% of the market.

This share increase came from the rest of the market, with the ext ten largest providers falling 1% to a combined 18% share, while the combined smaller providers dropped 4% to 18% as well.

The Infrastructure as a Service (IaaS) and the Platform as a Service (PaaS) market is growing, having topped $7 billion in 2016 with an annual growth rate of almost 50%. Including private cloud services, quarterly cloud revenues are now more than $9 billion.

“While a few cloud providers are growing at extraordinary rates, AWS continues to impress as a dominant market leader that has no intention of letting its crown slip,” said John Dinsdale, a chief analyst and research director at Synergy Research Group. 

“Achieving and maintaining a leadership position in this market takes huge ongoing investments in infrastructure, a continued expansion in the range of cloud services offered, strong credibility with the large enterprise sector, consistently strong execution, and the wholehearted and long-term backing of senior management. AWS is checking all of those boxes and any serious challengers need to do likewise.”