Conventional wisdom over the past year suggests that the epidemic has driven companies to the cloud at a much faster rate than they would have ever done without a forced event. The cloud infrastructure revenue numbers for this quarter prove that the thesis is correct.
According to Synergy Research data, the Big Three – Amazon, Microsoft and Google – reported around $ 40 billion in revenue on the market, as reported this week. This is $ 2 billion from the previous quarter and 37% higher than the same period last year. Canalis’s numbers were slightly over $ 42 billion.
As you might expect if you follow this market, AWS led the year with $ 13.5 billion, up 32% year over quarter. It has a run rate of $ 54 billion. While this is an eye-popping number, one that is truly notable is the annual revenue growth, especially for a company the size and maturity of Amazon. The law of large numbers would suggest that it may not be sustainable, but the pie continues to grow and Amazon continues to share substantially.
Overall AWS held steady with 32% market share. While revenue numbers continue to increase, Amazon’s market share has been around this number for years. It is the other companies in the market that are gaining share over time, most notably Microsoft which is good for about $ 7.8 billion in this quarter with a nearly 20% share.
Google continued to show signs of promise under Thomas Kurien, which is good for $ 3.5 billion to 9% as it makes a steady march towards double digits. Even IBM had a positive quarter, resulting in Red Hat and cloud revenue good for 5%, or about $ 2 billion.
Synergy’s chief analyst John Densdale says that even though AWS and Microsoft have control of the market, this does not mean that the companies playing behind them will not make money.
“These two do not have to spend a lot of time looking in their rearview mirrors and worrying about the competition. However, this is not to say that there are not some great opportunities for other players. Taking Amazon and Microsoft out of the picture, the rest of the market is generating more than $ 18 billion in quarterly revenue and growing by more than 30% per year. Cloud providers that focus on specific areas, services or user groups can target several years of robust growth, ”Dindale said in a statement.
Canalis, another firm that sees the same market as minor changes in synergy had similar findings, was certainly close enough to confirm each other’s findings. They have AWS with 32%, Microsoft 19% and Google 7%.
Canalys analyst Blake Murray says that there is still much room for growth, and we will continue to see a large number of this market for many years. “Although 2020 has seen large-scale cloud infrastructure spending, most enterprise workloads have not yet transitioned to the cloud. Migration and cloud spending will continue to grow as customers gain confidence during 2021. Postponed last year Large projects undertaken will resume, while new use cases will expand the addressable market.
The number we are seeing is hardly a surprise anymore, and as companies push more workloads into the cloud, the numbers will continue to be affected. The only question now is whether Microsoft can continue to close the market share gap with Amazon.