The top four public cloud providers continue to solidify their grip on the public cloud market, according to a report by Synergy Research Group.
With the bulk of the cloud companies reporting their third quarter earnings results, Amazon, Microsoft, Google and Alibaba are, respectively, still the top four public cloud providers. According to John Dinsdale, a chief analyst at Synergy Research Group (SRG), those four collectively increase their market share by around a percentage point every quarter.
With the public cloud market continuing to grow by 40% per year, Amazon’s share remains at around the 40% mark, while Microsoft, Google and Alibaba are all slowly gaining ground, but even if their market shares were combined they would still trail Amazon by a wide margin.
The top four market leaders were followed by Salesforce, IBM, Oracle, Tencent, Sinnet-AWS, and a large group of companies with slight market shares, according to SRG.
“It is particularly noteworthy that as spending on public cloud services continues to grow rapidly, the top four cloud providers are strengthening their grip on the market," Dinsdale said in a statement. "Some of the companies outside the top four are actually growing at a reasonable pace, but the reality is that in aggregate they continue to lose ground to the market leaders.
"Outside of some niche services and geographic regions, this is a game where scale of operations, geographic footprint and global brand are key competitive advantages.”
With most of the third quarter numbers in hand, Synergy estimates that total cloud infrastructure service revenues—including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and hosted private cloud services—topped $24 billion in the quarter, with revenues for the last four quarters now reaching $89 billion. The total market grew by 37% from the third quarter of 2018.
The public IaaS and PaaS sectors of the market continued to grow faster than private cloud services, with Q3 growth coming in at 40%. Geographically, the cloud market continues to grow strongly in all regions of the world.
“It has taken just eight quarters for the public IaaS and PaaS markets to double in size and our forecast shows them doubling in size again over the next eleven quarters,” Dinsdale said.