IaaS public cloud market tops $22billion

By:
James Pearce
Published on:

Amazon continues to dominate the market with 44% market share, generating more than six times the revenue of nearest rival Microsoft

The global infrastructure-as-a-service (IaaS) public cloud market grew by 31% in 2016, topping $22.1 billion, according to figures from Gartner.

Amazon led the way in the IaaS public cloud market with a 44% share of the revenue, followed by Microsoft (7.1%) and Alibaba (3%). Amazon had increased its share from 39.8% the previous year, while Microsoft also grew share from 5.8% in 2015.

Gartner’s figures found revenue made by Amazon in the sector grew by 45.9% to $9.7 billion, way higher than the $1.5 billion generated by Microsoft, although its revenue grew by 61%.

Google and Rackspace rounded out the top five, with a 2.3% and 2.2% share respectively, although the latter’s share of the market fell from 2.7% the previous year.

Other vendors make up a 42% share of the market, with combined revenue of $9.1 billion, up 13% year on year. The Others category fell from 48.4% share in 2015.

"The market for cloud services is growing faster than virtually every other IT market today, with much of this growth coming at the expense of the traditional, noncloud offerings," said Sid Nag, research director at Gartner. 

"The demand for cloud-based IaaS continues on its path of aggressive growth, and the high growth of IaaS is also driving growth in related cloud markets. While platform as a service (PaaS) and software as a service (SaaS) are also exhibiting strong growth, IaaS is expected to show the fastest growth over the next five years."