Amazon Web Services still leads cloud market, while Microsoft, Google, IBM gain ground

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Amazon Web Services still leads cloud market, while Microsoft, Google, IBM gain ground

Amazon Web Services continues to dominate the public cloud services market with an estimated 40 percent market share.

AWS’s market share in the fourth quarter of 2016 was unchanged from the previous year, according to Synergy Research Group, which collated the research.

AWS’s three main challengers, Microsoft, Google and IBM, gained ground, at the expense of smaller players in the market.

Their collective share in Q4 increased from 18 percent to 23 percent.

The next 10 cloud providers, which included Alibaba and Oracle, fell from 19 percent to 18 percent.

The plethora of other small and medium-sized cloud service providers saw their market share drop from 22 percent to 18 percent.

Quarterly public cloud infrastructure service revenues, including public infrastructure as a service and platform as a service, have now passed US$7 billion (AU$9.1 billion).

This is growing at almost 50 percent per year, according to Synergy.

If managed private cloud services are included, quarterly cloud revenues have now passed US$9 billion.

Synergy chief analyst John Dinsdale said AWS showed no intention of relinquishing its dominant market position.

“Achieving and maintaining a leadership position in this market takes huge ongoing investments in infrastructure, a continued expansion in the range of cloud services offered, strong credibility with the large enterprise sector, consistently strong execution, and the wholehearted and long-term backing of senior management,” he said.

“AWS is checking all of those boxes and any serious challengers need to do likewise.”

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