The Leading Cloud Providers Increase Their Market Share Again In The Third Quarter
Market leader Amazon maintained its dominance and remains bigger than its next four competitors combined.
New Q3 data from Synergy Research Group shows that spend on cloud infrastructure services jumped 45% from the third quarter of 2017. This was a little lower than the growth rate achieved in the first two quarters of the year, but compared favorably with growth rates achieved throughout 2017. Revenue growth at Microsoft, Google, and Alibaba again far surpassed overall market growth rate, so all three gained market share with Microsoft in particular jumping ahead.
Market leader Amazon maintained its dominance and remains bigger than its next four competitors combined. Its sheer scale prevents it from growing as fast as the chasing pack, but it still managed to nudge up its market share a percentage point to a little over 34%. The market share gains of these four came at the expense of small-to-medium-sized cloud operators. While many of those smaller providers are seeing reasonable revenue growth, they are lacking the scale and financial muscle of the leaders and are unable to keep pace with their larger competitors. Meanwhile IBM market share dropped off the pace a little but remained at comfortably over 7%, thanks primarily to its strong leadership in hosted private cloud services.