Amazon leaves rivals grounded in cloud market

Amazon is still way out in front when it comes to cloud services as it continues to leave Microsoft, Google, and IBM trailing behind with the company’s cloud arm growing faster than the market as a whole.

The Amazon Web Services [AWS] arm grew by 55 per cent in Q3 2013 with the worldwide market growing by 46 per cent over the same period in terms of infrastructure-as-a-service [IaaS]/platform-as-a-service [PaaS] revenue growth.

AWS revenues topped $700 million [£428 million] in Q3 2013 and even though Microsoft, IBM, Google and Salesforce all showed growth they were only able to reach just over $600 million [£367 million] in combined IaaS/PaaS revenue growth.

When you put together the revenue figures from Microsoft, IBM, Google, and PaaS leader Salesforce, the group trails AWS by some 15 per cent and illustrates just how big a hold on the cloud market AWS has.

“While Amazon dwarfs all competition, the race is on to see if any of the big four followers can distance themselves from their peers. The good news for these companies and for the long tail of operators with relatively small cloud infrastructure service operations, is that IaaS/PaaS will be growing strongly long into the future, providing plenty of opportunity for robust revenue growth," said Synergy Research Group’s John Dinsdale.

For the quarter IaaS/PaaS revenues passed $2.5 billion [£1.5 billion] with IaaS taking care of 64 per cent of that number. North American made up 53 per cent of the Q2 market with EMEA and APAC both accounting for 21 per cent each and Latin America making up five per cent of the market.

AWS led the way in all those markets but the chasing pack swapped positions depending on the market in question with no company a clear leader in second place.