Cloud Infrastructure Services Jumped 42% In Q1 2018
Chasing pack gain market share in Q1 but Amazon maintains a clear lead.
New data from Synergy Research Group shows that Q1 spend on cloud infrastructure services jumped 42% from the first quarter of 2018. Predictably this growth rate was somewhat lower than that seen throughout 2018 as the massive scale of the market now forces growth rates to moderate. Meanwhile Amazon again grew faster than the overall market, as it has done for the last eight quarters. Behind Amazon a group of four cloud providers are substantially outpacing overall market growth and are gaining market share. Microsoft, Google, Alibaba and Tencent all saw revenues increase by 70% or more year on year. Another group of four cloud providers have substantial market share but are somewhat niche players and typically have lower growth rates – IBM, Salesforce, Oracle, and Rackspace.
With most of the major cloud providers having now released their earnings data for Q1, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were well over $21 billion, with revenues for the last four quarters now reaching over $75 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 48% in Q1. In public cloud the dominance of the top five providers is even more pronounced, as they control over three quarters of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.