Cloud service revenue to reach USD 8 billion; APAC to have higher growth rate.
Amazon Web Services (AWS), Microsoft, IBM and Google combined control over half of the worldwide cloud infrastructure service market, as per Synergy Research Group. They also continue to grow more rapidly than their smaller competitors. In aggregate the big four grew their cloud infrastructure service revenues by 68% in second quarter, while the next 20 largest cloud providers grew by 41% and all other smaller providers grew by 27%, as per Synergy.
The market as a whole grew by 51%. Amazon remains in a league of its own, almost three times the size of its nearest competitor and with a clear lead in all major regions and most segments of the market. Meanwhile, Microsoft and Google can point to substantially higher growth rates, while IBM continues to feature strongly, thanks primarily to its leadership in the hosted private cloud segment.
With most of the major operators having now released their earnings data for second quarter, Synergy estimated that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud) have now reached the USD 8 billion milestone, while trailing twelve-month revenues are close to USD 28 billion. North America continues to account for over half of the worldwide market. The EMEA and APAC regions are similar in size, though APAC has a somewhat higher growth rate.