IBM, Microsoft Gain on Amazon in Cloud Infrastructure Race

Amazon is still way ahead in cloud infrastructure services, but new research shows that it’s no longer bigger than its four closest competitors combined.

Synergy Research says that faces with tougher competition, Amazon Web Services (AWS) failed to grow its cloud revenue in the last quarter and saw its year-over-year growth rate slip to 49 percent — still nothing to shake a stick at.

“It has become clear that AWS finally has some tough competition to face,” said John Dinsdale, a chief analyst and research director at Synergy Research Group. “Until this quarter it could claim that it was bigger than its four nearest competitors, but now at least one jewel has fallen from its crown. While it remains a formidable leader of the market, Microsoft is making some huge strides in IaaS and PaaS while IBM now has clear leadership in the private and hybrid infrastructure services segment.”

Synergy estimates second-quarter cloud infrastructure service revenues (including IaaS, PaaS, and private and hybrid cloud) hit $3.7 billion. The number for the past 12 months is more than $13 billion. With the total market growing more than 45 percent, Microsoft and IBM have gained market share over the last four quarters while the share of AWS and Google is essentially unchanged from a year ago, Synergy said.

Total AWS revenues are now well in excess of $1 billion per quarter, with nearly all of that coming from cloud infrastructure services. IBM and Microsoft also both claim quarterly cloud revenues of about $1 billion, but in their cases much of the cloud revenue comes from software/SaaS, cloud-related hardware products or associated professional and technical services.  

Follow senior online managing editor @Craig_Galbraith on Twitter.

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