Amazon, Microsoft and Google lead the cloud market
While the trio controls 70% of the public cloud market, the rest grows by 27%
A new report from Synergy Research Group shows Q3 enterprise spending on cloud infrastructure services reached $45 billion, an increase of 37% over Q3 2020.
Amazon, Microsoft, and Google continue to rake in more than half of worldwide cloud spending, holding market shares of 33%, 20%, and 10%, respectively. Growing at a faster rate than the overall market, the trio’s share of worldwide revenues is steadily increasing.
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Even so, other cloud providers have reported strong growth in their cloud revenues. Among the next ten largest cloud providers, sales grew 28 percent year over year, while small to medium-sized providers grew 25 percent.
According to Synergy, quarterly revenues from cloud infrastructure services, including IaaS, PaaS, and hosted private cloud services, totaled $45.4 billion with trailing twelve-month revenues at $164 billion.
Public IaaS and PaaS services grew by 39 percent and accounted for the majority of market growth in Q3. Major cloud providers dominate the public cloud market, with the top three controlling 70% of the market.
"Given their scale, ever-expanding worldwide presence, and impressive revenue growth rates, it is understandable that Amazon, Microsoft and Google grab the most attention for their cloud activities. However, that makes it easy to overlook the fact that other cloud providers generated $17 billion in the quarter, a figure which grew by 27% from last year," said John Dinsdale, chief analyst at Synergy Research Group.
Dinsdale further explained that the $17 billion market is attractive to many service providers and their suppliers due to its rapid growth.
“Clearly there are challenges with the big three companies lurking in the background, so the name of the game is not competing with them head on. Providing companies are smart about targeting the right applications and customer groups, cloud can provide a broad and exciting range of growth opportunities for them," added Dinsdale.
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