As big cloud providers grow, small providers pay the price

February 7, 2017
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Dive Brief:

  • “Other” cloud providers — a group that includes the 10 providers with dramatically lower revenue than cloud leaders Amazon Web Services (AWS), Microsoft, Google and IBM — are falling further behind as the leaders continue to grow their market share, according to Q4 data from Synergy Research Group.

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    Dive Brief:

    • “Other” cloud providers — a group that includes the 10 providers with dramatically lower revenue than cloud leaders Amazon Web Services (AWS), Microsoft, Google and IBM — are falling further behind as the leaders continue to grow their market share, according to Q4 data from Synergy Research Group.

    • AWS now controls about 40% of the cloud market, and Microsoft, Google and IBM together control about 23%, according to Synergy. And while Microsoft, Google and IBM increased their worldwide market share by almost five percentage points over the last year, “other” providers dropped a point.

    • Synergy estimates that quarterly public cloud infrastructure service revenues are now over $7 billion and continue to grow at a rate of almost 50% a year.

    Dive Insight:

    Alibaba and Oracle are notable exceptions to the “others” group, each continuing to grow at strong rates. Alibaba made up 2.4% of the total cloud market in Q4, followed by Oracle at 1.7%, according to a Canalys analysis.

    Each of the primary contenders has been making big investments in their data centers to enable more growth. Last month, Oracle said it plans to launch three new cloud services regions — in Reston, VA, London and Turkey — in the next six months to better meet anticipated customer demand.

    Meanwhile, Alibaba continues to expand outside its native China, looking to grab a bigger worldwide market now that U.S. companies have laid the groundwork for cloud.


    This post originally appeared on our sister publication, CIO Dive. Our mission is to provide busy professionals like you with a bird’s-eye-view of the Information Technology industry in 60 seconds. To subscribe to our daily newsletter click here.

     

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