Synergy: Amazon Web Services grabs 30% of cloud services market

Amazon Web Services (AWS) continues to lead the cloud services market with revenues growing 25 percent sequentially, driving the company to achieve what a new Synergy Research Group report said is a "five-year high" of the cloud infrastructure service market.

Third-quarter revenue growth enabled AWS to take 30 percent worldwide market share in the fourth quarter of 2014.

Trailing AWS in second place is Microsoft, which gained its highest year-on-year revenue growth, followed by Google, as all three cloud operators outperformed the total market growth and gained market share.

"The momentum that has been built up at AWS and Microsoft is particularly impressive," said John Dinsdale, a chief analyst and research director at Synergy Research Group. "They have an ever-broadening portfolio of services and they are also benefitting from a slowdown in the super-aggressive price competition that was a feature of the first half of 2014."

Meanwhile, IBM's growth in the segment was largely in line with the market so its market share held steady, while it continued to be the dominant player in the private and hybrid cloud services segment.

For the entire year 2014, AWS' share of the worldwide market was 28 percent, followed by Microsoft (10 percent), IBM (7 percent), Google (5 percent), salesforce (4 percent) and Rackspace (3 percent).

Now that all of the major cloud operators have released their earnings data for the fourth quarter, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and private and hybrid cloud) are now approaching the $5 billion milestone, with trailing 12-month revenues exceeding $16 billion. Overall 2014 cloud service revenues grew by 48 percent from 2013.

For more:
- see the release

Related articles:
Synergy: Cisco, HP vie for the top spot in the cloud infrastructure market
Synergy: U.S., Japan, UK and China drive worldwide retail colocation revenues
Cisco's service provider routing market share rebounds with APAC, EMEA growth, says Synergy
Synergy: Cisco maintains lead over HP in the cloud infrastructure market

Suggested Articles

Like most telcos, there are challenges ahead for CenturyLink, but one area it can bank on is its fiber network both here and abroad.

With the surge of data-hungry gamers battling for the best experience, how will your network rise to the challenge?

Listen now.

It's going to be fun watching the epic battle unfolding between hedge fund giant Elliott Management and massive conglomerate AT&T.