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Public Cloud Market Share: Amazon AWS Leads, Rivals Gain Ground in 3Q19

Amazon Web Service, Microsoft Azure, Google Cloud Platform and Alibaba controlled 70 percent of the worldwide market for infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) in the third quarter of 2019, according to market intelligence firm Synergy Research Group.

In addition, Amazon’s global market share for AW held around 40 percent in 3Q19, but Microsoft, Google and Alibaba gained ground on Amazon during the time frame.

Other notable findings from Synergy’s worldwide public IaaS and PaaS market research for 3Q19 included:

  • Salesforce, IBM, Oracle, Tencent and Sinnet-AWS held minor market shares.
  • Worldwide spending on public IaaS and PaaS reached $20 billion; this total represented more than 80 percent of total spending on cloud infrastructure services.
  • The worldwide public IaaS and PaaS market grew 40 percent year over year.

Furthermore, Synergy has estimated that total cloud infrastructure service revenues exceeded $24 billion in 3Q19. Synergy also indicated that total cloud infrastructure service revenues reached $89 billion for the last four quarters.

A Closer Look at the Public Cloud Services Market

Public cloud adoption is increasing and private cloud adoption is declining, according to the “2019 State of the Cloud” report from IT asset management provider Flexera. Also, the report revealed that Amazon Web Services (AWS) is the top choice among public cloud services, followed by Microsoft Azure and Google Cloud Platform.

Still, publics are watching closely amid Microsoft’s recent victory over AWS for the Pentagon’s highly contested JEDI Cloud contract.

Public Cloud Services: Growth Forecast

Expect the demand for public cloud services to continue to increase in the foreseeable future as well.

Enterprises said they plan to spend 24 percent more on public cloud in 2019 than they did in 2018, the Flexera report indicated. Meanwhile, 8 percent of enterprises noted they spend more than $12 million a year on public cloud, and 50 percent spend more than $1.2 million annually.

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