AWS leads worldwide IaaS/Paas market; Google, Microsoft and IBM chase

Infotech Lead America: Amazon Web Services (AWS) continues to lead worldwide IaaS/PaaS market, according to the latest research data from Synergy Research Group.

Microsoft, Google and IBM are chasing hard to beat the leader, but according to Synergy Research, their aggregated revenues still equate to only 63 percent of Amazon’s. Salesforce, with its force.com offering has similar cloud infrastructure revenues to the three chasing companies.

Amazon’s revenue grew 52 percent year on year while the overall market grew 47 percent year on year.

IaaS accounted for 64 percent share of IaaS/PaaS revenues for the quarter — $2.25 billion. North America accounted for 53 percent of the Q2 market, with EMEA and APAC each accounting for 21 percent and Latin America 5 percent.

Amazon Web Service

Amazon leads the market in each of the four regions, though the ranking of the chasing pack does differ by region. Associated infrastructure service markets all grew in the quarter, but much more slowly than IaaS and PaaS. Managed hosting revenues grew by 2 percent year-on-year, retail colocation grew by 8 percent and CDN by 15 percent.

“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,” Dinsdale added. “While IBM’s acquisition of SoftLayer helped it to leapfrog both Microsoft and Google, the three remain tightly bunched with somewhat similar growth trajectories.”

Meanwhile a new research from Market Monitor, a service of 451 Research, said IaaS market is expected to grow a 37 percent CAGR through 2016. The report also confirmed that IaaS accounts for the majority of total market revenue in 2012, with more than half of the total public cloud market share.

According to Market Monitor, PaaS accounted for nearly a quarter (24 percent) of the total public cloud revenue in 2012 and is expected to grow at a CAGR of 41 percent between 2012 and 2016.

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