Amazon Dominates in Cloud Services

Several IT heavyweights have failed to close the gap on cloud-services revenue market leader Amazon Web Services, despite an increasing number of service launches and marketing initiatives.

That’s one finding in a new report from Synergy Research Group, whose data shows that Q1 service revenue from infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) exceeded $2 billion, growing a staggering 56 percent from the first quarter of 2012.

Synergy says all regions are showing strong growth, though North America continues to account for well over half of the worldwide market. In the first quarter, Asia-Pacific and EMEA accounted for 21 percent and 20 percent of revenues, respectively, with the Latin American market remaining relatively small.

Amazon has 27 percent market share the same amount it had for the whole of 2012 and it’s the leader in all regions.

“While I cannot imagine Amazon losing its grip on the market, cloud services are growing at such a pace that all the lead players should be able to see strong growth over the next five years,” said Synergy Research Group’s John Dinsdale. “Google and Microsoft are playing catch-up with relatively recent IaaS service launches, while a raft of telcos are also getting into the game. The success of IaaS and PaaS will also take away some growth opportunity from managed hosting and colocation, causing some specialists in those segments to diversify into cloud services.”

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