The latest report by Synergy Research Group on the cloud computing market shows that Amazon Web Services Inc. (AWS), outperformed the market in terms growth, while the “chasing pack”, has gained market share.
This “chasing pack” includes Microsoft and Tencent, Alibaba, Google, Tencent, and Oracle in the first tier, and IBM, Salesforce and Oracle in another group of “somewhat niche actors”.
For the first quarter this year, the report indicated that cloud infrastructure services spending grew by 42 percent compared to the first quarter last year.
Synergy stated in a press release that “predictably this growth rate wasn’t as high as it was during 2018, due to the large market size now forcing growth rates to moderate.” “Amazon grew faster than overall market, as it has done in the past eight quarters.”
[Click on the image to see a larger view.] Cloud Infrastructure Services Roundup (source : Synergy Group) Revenues increased by 70% or more in the past year for Microsoft, Google, Alibaba, and Tencent. This is significantly higher than the overall market growth.
John Dinsdale, chief analyst at Synergy research Group, stated that “This is another impressive quarter for the cloud market.” “The market’s decline in growth should not be seen as a sign of weakness, but as a result of a market that is now massively diversified. The market has grown by well over a million dollars in the eighth quarter. As the market grows, the cloud providers that are competing with Amazon have split into niche-oriented providers and high-growth challengers. Amazon maintains its strong leadership and controls a third of global market.
[Click on the image to see a larger view.] Top Cloud Challenges (source : Flexera). RightScale published a report earlier this year stating that Microsoft’s cloud was catching up with aWS. “RightScale 2019 State of the Cloud Report” stated that “Azure continues its rapid growth and decreases the AWS lead, particularly among enterprises.”