Report: Quarterly Cloud Service Revenues Top $6B As Growth Rate Increases
For the second consecutive quarter the annualized growth rate has increased and is once again above the 50% mark.
New Q3 data from Synergy Research Group shows that quarterly revenues from cloud infrastructure services have now passed the $6 billion milestone, with revenues for the last four quarters coming in at well over $21 billion. For the second consecutive quarter the annualized growth rate has increased and is once again above the 50% mark, rewarding the market’s four leading service providers.
As the market continues to boom it remains dominated by Amazon Web Services (AWS), Microsoft, IBM and Google, who in aggregate account for well over half of worldwide cloud infrastructure service revenues. AWS is still in a league of its own with a market share in excess of 30%, but Microsoft and Google can at least boast revenue growth rates in excess of 100%. All four are growing more rapidly than the market as a whole.
“In early 2014 market growth was somewhat stymied by overly aggressive price competition and more recently there have been some headwinds caused by the strengthening dollar, but we are now seeing a truer picture of the underlying growth in cloud usage,” said John Dinsdale, a chief analyst and research director at Synergy Research Group. “It might be tempting to think of cloud technologies as now being relatively mature, but the truth is that this is a market which is still in its very early stages of development. As the leading cloud operators continue to launch an impressive array of new services we will continue to see a huge swing away from traditional IT practices to a world that will be dominated by the cloud.”
This article was originally posted “Report: Quarterly Cloud Service Revenues Top $6B As Growth Rate Increases” from Cloud Strategy Magazine.