Cloud computing's 'Big Four' strengthen market grip as revenues grow by 50%

By Ben Mouncer
Revenues in cloud computing grew by 50% year-on-year in Q2 as the industry's four major players continued to dominate. Amazon Web Services increased it...

Revenues in cloud computing grew by 50% year-on-year in Q2 as the industry's four major players continued to dominate.

Amazon Web Services increased its market share by a percentage point to 34%, a number greater than the combined share of its four biggest competitors, including its three rivals Microsoft Azure, Google Cloud and Alibaba Cloud. 

Data released by Synergy Research Group (SRG) revealed that small and medium-sized cloud providers have lost ground to the big hitters, though IBM has maintained its own niche through its leadership in private cloud services.

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SRG estimates that quarterly cloud infrastructure revenues easily passed the $16bn mark. That rate compares with a full-year 2017 growth rate of 44% and a 2016 growth rate of 50%.

"Amazon Web Services and its three main challengers all turned in some exceptional growth numbers in the quarter," said John Dinsdale, a Chief Analyst at SRG. "Collectively those four firms alone accounted for well over three quarters of the sequential growth in cloud service revenues.

"In a large and strategically vital market that is growing at exceptional rates, they are throwing the gauntlet down to their smaller competitors by continuing to invest enormous amounts in their data centre infrastructure and operations. Their increased market share is clear evidence that their strategies are working."

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