The cloud pavilion of Amazon Web Services at the 2016 CeBIT tech fair in Hanover, Germany (Photo by Sean Gallup/Getty Images)

Despite Growing Faster Than AWS, Top Cloud Contenders Still Far Behind

Brought to You by Talkin’ Cloud

Amazon Web Services (AWS) may not be the fastest growing cloud infrastructure service provider, but it’s so far ahead of the others in terms of market share that Synergy Research says it’s in a “league of its own.”

This week AWSMicrosoft, and Alphabet released quarterly earnings results, showing strong growth in cloud services.

According to Synergy, in Q1 2017, Microsoft, Google, IBM, Alibaba and Oracle all achieved growth rates that were “substantially higher than that of AWS” but AWS revenues are “comfortably bigger than the other five combined.”

Microsoft, Google and Alibaba achieved annual growth rates exceeding 80 percent, while niche cloud providers like Rackspace and Salesforce have lower growth rates but maintain strong positions in their respective markets. This week Rackspace rolled out professional services for AWS cloud.

AWS reported quarterly “revenue of $3.66 billion, slightly topping estimates and reflecting 42.6 percent growth, and operating income of $890 million,” according to MarketWatchMicrosoft performed slightly better than expected, with revenue of $23.6 billion, versus $23.62 billion that was expected in the quarter. Alphabet includes its cloud business revenues in “other revenues” – in this quarter alone, according to Quartz, Google generated $3 billion in other revenues, an increase of 50 percent over the same quarter the year before.  

“At the top end of the cloud provider market we’re now seeing a clear stratification featuring AWS, a group of higher-growth chasers, and a couple of more focused niche players,” John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group said in a statement. “Beyond those leading companies, the cloud market features a long tail of small-to-medium sized providers or companies that have only a minor position in the market, typically based on either a specific country or focused application area. There are decent growth opportunities for some of these smaller players, but they are unlikely to make much impact in terms of overall worldwide market share.”

This article originally appeared on Talkin’ Cloud.

Get Daily Email News from DCK!
Subscribe now and get our special report, "The World's Most Unique Data Centers."

Enter your email to receive messages about offerings by Penton, its brands, affiliates and/or third-party partners, consistent with Penton's Privacy Policy.

About the Author

Nicole Henderson is the Editor in Chief of the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto. You can find her on Twitter @NicoleHenderson.

Add Your Comments

  • (will not be published)

One Comment

  1. Amazon AWS was among the first few cloud service providers. It captured the market earlier. It is now very difficult for existing AWS users to migrate to any other cloud platform because there is no strong driving force. AWS provides lots of features at very very low cost(comparatively).