The five leading cloud service providers -- Amazon, IBM, Google, Microsoft and Salesforce -- each are growing rapidly. But get this: Amazon Web Services (AWS) generates more cloud services infrastructure revenues than its four main rivals -- combined, according to new third-party research.
First a little background: I recently reported that Amazon's cloud revenues easily outpace IBM's. Several readers asked me for the bigger picture -- data on the overall market plus where Microsoft and Google fit into the conversation. Eager to appease those folks, I dug up this just-released data from Synergy Research:
What the Numbers Reveal
The chart basically shows that Amazon's Q1 2015 cloud services revenue (nearly $1.5 billion) stretched beyond the combined alternative revenues from Salesforce, Microsoft, IBM and Google. Still, rivals are jockeying for position...
- Microsoft Azure is the fastest-growing public cloud.
- IBM's greatest strength is in the hybrid cloud market.
- Google seems to be the wildcard in this conversation since AWS likely has a big leg up with IaaS and Microsoft likely has a leg up with SaaS (Office 365, Exchange, Etc.).
Some additional anecdotes from Synergy:
- The overall cloud infrastructure market now generates more than $5 billion in quarterly revenues, with Amazon commanding roughly 29 percent of that market.
- Trailing 12-month cloud infrastructure revenues for the industry have reached about $17 billion, with annual growth of about 45 percent.
- Six companies -- Amazon, IBM, Microsoft, HP, Cisco and Salesforce -- now have annual cloud revenue run rates of more than $5 billion.
More Spin (From Me)
I was surprised to see HP on the bullet-list, considering the company's SaaS revenues have been flat and the HP public cloud has been a market also-ran. I'm also surprised Oracle is not yet near the top of the heap, considering CEO Mark Hurd predicted 95 percent of Oracle offerings would be available on the cloud by October 2015.
All that said, this remains Amazon's game to lose. AWS is growing fast and far more profitable (Q1 operating income: $249 million) than most pundits expected. Still, I expect more traditional enterprise players like IBM, Microsoft and Oracle to gain momentum as CIOs increasingly seek all-in-one cloud services that also include migration, consulting and support.
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