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Cloud computing industry grows by half, Amazon continues to dominate

The cloud computing industry has grown by almost half in the last year, with Amazon continuing its domination of the market.

Although Amazon's closest competitors, IT giants Microsoft, Google and IBM's cloud revenue all increased in the last year, Amazon remains well out front, taking a revenue of $600 million ($385 million) in the last quarter for its cloud services. Combined, Microsoft, Google and IBM took just $400 million (£255 million).

Amazon also increased its year-on-year market share to 28 per cent with its revenue rocketing by 52 per cent; faster than the industry as a whole, which grew by 47 per cent year-on-year in Q2.

The entire cloud industry took revenues of $2.25 billion (£1.45 billion) in the last quarter according to the data, compiled by Synergy Research Group (opens in new tab). North America accounted for 53 per cent of the market whilst Europe, the Middle East and Africa together took 21 percent, as did the Asia Pacific region.

Amazon is the clear market leader in each of the four regions, though the ranking of the chasing pack does differ throughout, according to Synergy's data.

"Starting from a much smaller base the big three IT companies actually achieved higher growth rates, but Amazon is doing an impressive job of keeping its grip on market leadership and remains in a league of its own" said Synergy Research Group's John Dinsdale.

"The real race is to see if any of the chasing pack can establish themselves as a clear number two in the IaaS/PaaS market. While IBM's acquisition of SoftLayer helped it to leapfrog both Microsoft and Google, the three remain tightly bunched with somewhat similar growth trajectories."

Tomas is co-founder of Lucky Pilgrim, a team of journalists, photographers and art directors who connect brands to audiences through words, imagery and design. He was formerly editorial director at Chapel and managing editor at Courier magazine, and was a writer for ITProPortal as well as The Independent, EastLondonLines, The Sunday Times Magazine, and Croon.