Amazon keeps top spot in IaaS market

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The global Infrastructure-as-a-Service (IaaS) market grew by almost a third last year, hitting $32.4 billion, according to market analysts Gartner. 

The company’s latest report into the growth of the industry claims that Amazon is still the number one vendor in the space, with the likes of Microsoft, Google, IBM and Alibaba breathing down its neck.

These top five make up more than three quarters of the market – 77 per cent, up from 73 per cent the year before. Gartner research VP Sid Nag says the cloud market’s consolidation favours the giants, while smaller players in the field keep losing share, concluding that scalability matters.

“Offering rich feature functionality across the cloud technology stack will be the ticket to success, as well,” he added.

Gartner expects market consolidation to continue through most of this year, mostly because the top providers will keep on growing.

“Consolidation will occur as organizations and developers look for standardised, broadly supported platforms for developing and hosting cloud applications,” said Mr Nag.

Amazon has had $15.5 billion in revenue last year, up by more than a quarter (27 per cent), compared to the year before. It currently holds almost half of the entire market, and continues to “aggressively expand” into new markets, Gartner says.

Microsoft is the second largest provider, surpassing $5 billion last year, up from $3.1bn the year before.