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Amazon Blows Cloud Competition Away, But Microsoft Gains

By Craig Galbraith
May 05, 2014 - News

A new report says that Amazon Web Services is the dominant leader in cloud-infrastructure services revenue, but that Microsoft has improved its position “remarkably" in the past year and is pulling away from the rest of the pack of companies that are vying for second place.

That’s according to Synergy Research Group, which says Amazon still has greater market share than its four nearest rivals combined.

Synergy estimates that cloud-infrastructure service revenue (including IaaS, PaaS, and private and hybrid cloud) were $3.5 billion in the first quarter, with revenue for the previous 12 months being $12 billion.

With the total market growing at an annual rate of almost 50 percent, Synergy says that Amazon, Microsoft, IBM and Google have all gained market share over the last four quarters. Total Amazon (AWS) revenue is now well in excess of $1 billion per quarter, with nearly all of that coming from cloud-infrastructure services. IBM and Microsoft also have enviable cloud numbers, but in their cases, much of the cloud revenue comes from software/SaaS, cloud-related hardware products or associated professional and technical services.

"Microsoft's cloud growth really is impressive," said John Dinsdale, chief analyst and research director at Synergy Research Group. "A combination of marketing muscle and credibility with the target audience is helping it to make great strides. Nonetheless, Amazon's revenues are still more than three times those of Microsoft and it will remain in a league of its own for the foreseeable future."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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