A recent report from Synergy Research Group showed some interesting figures around the companies leading the way for cloud infrastructure services. The report revealed that the giants of traditional software, IBM and Microsoft, were leading the way in terms of growth rate in cloud services – the former showing a surge of 86 percent in cloud revenue in Q2, while the latter presented 164 percent increase.
The report also found that, while Amazon is still ahead in overall cloud revenue, with $962 million, the company can no longer claim to be bigger than its four closest competitors combined. The research group said tougher competition meant AWS did not grow its “cloud revenues on a sequential basis, and consequently saw its at year-on-year growth rate drop to 49%.” The current growth rate of AWS is only 4 percent above the cloud market as a whole (45 percent).
“It has become clear that AWS finally has some tough competition to face,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group.
“Until this quarter it could claim that it was bigger than its four nearest competitors, but now at least one jewel has fallen from its crown. While it remains a formidable leader of the market, Microsoft is making some huge strides in IaaS and PaaS while IBM now has clear leadership in the private & hybrid infrastructure services segment.”
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Amazon’s cloud revenues reached $962 million, compared with IBM’s $259 million and Microsoft’s $370 million. The research group estimates that the quarterly cloud infrastructure revenues (including IaaS, PaaS, and private & hybrid cloud) have reached $3.7 billion. The report claims that Microsoft and IBM have gained considerable market share over the last four quarters, and that AWS and Google’s market share is “essentially unchanged from a year ago.”
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(Image Credit: Torkild Retvedt)