The global public cloud infrastructure-as-a-service (IaaS) market saw significant growth last year, as digital transformation gained momentum and cloud-reliant technologies matured.
According to the latest figures from analyst house Gartner, the IaaS market reached $44.5 billion in 2019, up 37.3 percent from $32.4 billion in 2018.
Amazon holds the largest market share (45 percent), taking in $20 billion in revenue for the year and expanding its IaaS business by 29 percent.
The e-commerce giant is trailed by Microsoft ($7.9 billion), Alibaba ($4.1 billion), Google ($2.4 billion) and Tencent ($1.2 billion), all of which enjoyed even greater segment growth in 2019. Chinese giant Tencent, for example, saw IaaS earnings surge by more than 100 percent last year.
“Cloud underpins the push to digital business, which remains at the top of CIOs’ agendas. It enables technologies such as the edge, AI, machine learning and 5G, among others” said Sid Nag, Research Vice President at Gartner.
“At the end of the day, each of these technologies requires a scalable, elastic and high-capacity infrastructure platform like public cloud IaaS, which is why the market growth is so strong.”
Gartner expects the IaaS market to continue on a similar growth trajectory this year, with the shift to the cloud made more important than ever as a result of the coronavirus pandemic and rise of remote working.
“When enterprises were compelled to move their applications to the public cloud as a result of the pandemic, they realized the true benefits of public cloud and it is unlikely they will change course. In the recovery and rebound phase, CIOs are recognizing that they don’t need to bring workloads back on premise,” explained Nag.
- Check out our list of the best cloud storage services out there