Amazon is the clear global market share leader in providing infrastructure as a service (IaaS) in the public cloud, surpassing rivals Microsoft, Alibaba and Google.
The global audience for IaaS cloud services reached $90.9 billion in 2021, representing an annual growth of 41% year-over-year, from $64.3 billion in 2020, according to new data from IT research firm Gartner.
The four cloud giants of Amazon Web Services (AWS), Microsoft Azure, Alibaba and Google Cloud achieved 76% of the total IaaS cloud services market last year.
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Amazon gains 38.9% market share
Amazon, which is the technology arm of AWS (in English) is the global leader in cloud services, generated total revenue of $35.4 billion in IaaS public cloud services in 2021, representing growth in sales up 35% year-over-year, up from $26.2 billion in 2020.
The Seattle-based company won a 38.9% share of the global IaaS cloud market in 2021, up from 40.8% in 2020, according to Gartner. Crucially, Amazon grew its IaaS revenue by $9 billion between 2020 and 2021.
Amazon has been the market share leader in the IaaS industry for several years.
No. 2 Microsoft takes market share
Although Microsoft lags far behind Amazon in terms of global market share, the software giant gained market share in 2021 from Amazon whose market share fell by around two percentage points.
Microsoft generated approximately $19.2 billion in cloud iaas revenue in 2021, up 51.3% year-over-year from $12.6 billion in sales in 2020.
With many organizations already leveraging Microsoft’s vast portfolio of software and services, Azure is poised to seize opportunities in almost any vertical market, Gartner said.
Alibaba’s cloud stronghold in Asia-Pacific
China-based Alibaba continues to dominate the Chinese cloud market, while also positioning itself as the top regional cloud provider in emerging markets such as Indonesia and Malaysia.
Alibaba generated $8.7 billion in IaaS cloud services revenue in 2021, up 42% from $6.1 billion in 2020, according to Gartner.
Alibaba captured the No. 3 spot by gaining 9.5% market share in IaaS public cloud services in 2021, which remained stable with the 9.5% share it gained in 2020.
Google grows cloud sales fastest
Google, whose technology branch Google Cloud is one of the big projects to gain more market share, has developed IaaS cloud services at the fastest percentage rate in the world.
Google reported $6.4 billion in global IaaS cloud services revenue in 2021, up nearly 64% year-over-year from $3.9 billion in sales in 2020.
The Mountain View, Calif.-based search and cloud giant has seen this growth thanks to an ever-increasing adoption of traditional enterprise workloads as well as Google’s innovation in more advanced capabilities like as artificial intelligence and container technologies.
Google Cloud is also expanding its partner ecosystem to reach a broader customer base that helps drive IaaS sales.
Gartner: “Cloud-native is becoming the primary architecture for modern workloads”
Gartner’s Sid Nag said the IaaS market continues to grow “unabated as cloud native becomes the mainstream architecture for modern workloads.”
“The cloud supports the scalability and composability required by advanced technologies and applications, while enabling enterprises to meet emerging needs such as sovereignty, data integration and improved customer experience” , Nag, vice president and analyst at Gartner, said in a statement.
Gartner said regional cloud ecosystems are becoming increasingly important amid growing geopolitical fragmentation and emerging regulatory and compliance requirements, presenting an opportunity for vendors with a strong regional presence.
The next phase of IaaS growth will be driven by customer experience, digital outcomes and “virtual world first,” according to Nag.
“Emerging technologies that can help companies bring experiences closer to their customers, such as metaverses, chatbots and digital twins, will require hyperscale infrastructure to meet growing demands for computing power and storage,” Nag said. .