AWS and Microsoft lead cloud infrastructure services market

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16 January 2018 | 0

Amazon Web Services and Microsoft have been named the leaders in infrastructure-as-a-services (IaaS) and platform-as-a-service (PaaS) segments.

Revenues across six key cloud services and infrastructure have grown by 24% on an annualised basis. IaaS and PaaS grew by 47%, being the segment with the highest growth rate.

The four quarters ending September 2017 registered combined revenues, among operator and vendors, of $180 billion (€147 billion), according to data from Synergy Research Group.

Software-as-a-service (SaaS) followed IaaS and PaaS growing 31% and hosted private cloud infrastructure services came third with 30% growth.

IBM and Rackspace were the top vendors of hosted private cloud services, while Microsoft and Salesforce were the top enterprise SaaS vendors.

Cloud services segments are growing three times quicker than cloud infrastructure hardware and software. This trend was initiated in 2016, according to Synergy, when spend on cloud services areas surpassed the spend on hardware and software used to build public and private clouds.

Infrastructure investments by cloud service providers helped these providers to generate over $100 billion (€817 million) in revenues from cloud infrastructure services (IaaS, PaaS, hosted private cloud services) and enterprise SaaS.

Unified communications-as-a-service (UCaaS) grew just over 20% with US-headquartered RingCentral and Mitel at the top of the list.

Between Q4 2016 to Q3 2017, total spend on hardware and software to build cloud infrastructure approached $80 billion (€65 billion), split evenly between public and private clouds, according to Synergy.

Public cloud infrastructure hardware and software grew 13% with Cisco and Dell EMC leading as the top vendors. Private cloud infrastructure was the slower segment, growing eight per cent with Dell EMC and HPE as the top vendors.

“We tagged 2015 as the year when cloud became mainstream and 2016 as the year when cloud started to dominate many IT market segments,” Synergy Research Group chief analyst and research director, John Dinsdale, said. “In 2017 cloud was the new normal.”

“Major barriers to cloud adoption are now almost a thing of the past, with previously perceived weaknesses, such as security, now often seen as strengths.

“Cloud technologies are now generating massive revenues for cloud service providers and technology vendors and we forecast that current market growth rates will decline only slowly over the next five years,” Dinsdale added.

 

IDG News Service

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