Rivals’ Higher Growth Rates Fail To Dent AWS Market Lead

According to new research by Synergy Research Group, Microsoft and Google boast higher growth rates for their respective cloud service offerings, but they are not able to compete with Amazon Web Services Inc.’s market share lead.
Synergy’s 2015 Q4 research data, published last week, shows more of the same old stuff. AWS’ global market share for 2015 is more than 30 percent. No. 2 Microsoft failed even to reach 10 percent. IBM, Google, and Salesforce round out the top five cloud infrastructure service providers.
John Dinsdale, Synergy analyst, stated that “the big four cloud operators continue to runaway with the market.” “The second tier operators are either niche players or generalist IT service providers. They lack the scale, focus, and investment capabilities necessary to challenge the top four hyperscale cloud providers. This second tier includes Salesforce and Rackspace, Oracle as well as NTT, Fujitsu and Alibaba.
AWS retains a large market share lead despite other services posting higher growth rates. Microsoft’s 124% year-over-year rate almost doubles AWS’s 63 percent. Google was No. 2 at 108 per cent.
[Click on the image to see a larger version.] Market Share and Growth (source Synergy Research group) “The top four companies grew more than the market overall and together account for more than half of the global market,” Synergy stated.
The research firm stated that IBM is still leading the private and hybrid service providers in an enormous market that’s growing.
Synergy stated that most major operators have now released their earnings data for Q4. It estimates that quarterly cloud infrastructure services revenues (including IaaS and PaaS) are approaching $7 billion. The trailing twelve-month revenues exceed $23 billion. “Total 2015 revenues increased by 52 percent over the previous year.”