Amazon Web Services Continues Cloud Domination

In the cloud computing space, there is Amazon Web Services and then everyone else. The tech giant has established itself as the preeminent vendor in this burgeoning industry, so much so that the company recently experienced a five-year high in terms of its infrastructure market share, according to a new Synergy Research Group report.

The research firm said Amazon Web Services held 28 percent market share for the full year in 2014, followed by Microsoft at 10 percent. IBM was third with 7 percent of the industry, while Google accounted for 5 percent, Salesforce at 4 percent and Rackspace with 3 percent.

What is most telling about the current state of the cloud-based infrastructure market is that Amazon Web Services and the next five vendors in the industry are roughly neck and neck in terms of share.

Revenue is also trending upward
The Synergy report noted cloud infrastructure service revenues, which include private clouds, hybrid models, Infrastructure-as-a-Service and Platform-as-a-Service suites, totaled nearly $5 billion during the fourth quarter of 2014. Total earnings for the full year surpassed $16 billion, up almost 50 percent from 2013 levels.

The analysis indicated AWS increased its revenue by 25 percent between the third and fourth quarters of 2014.

John Dinsdale, chief analyst and research director at Synergy, explained the global cloud market is trending in a positive direction, thanks to existing adoption barriers or perceived challenges dissipating.

“The momentum that has been built up at AWS and Microsoft is particularly impressive. They have an ever-broadening portfolio of services and they are also benefiting from a slowdown in the super-aggressive price competition that was a feature of the first half of 2014,” Dinsdale added.

Full post Amazon Web Services continue cloud domination can be read on RISC Networks.