Home CioAxis Global IaaS Public Cloud Services Market Grows 31.3% in 2018

Global IaaS Public Cloud Services Market Grows 31.3% in 2018

by CIO AXIS

Amazon was the No. 1 vendor in the IaaS market in 2018 followed by Microsoft, Alibaba, Google and IBM.

The worldwide infrastructure as a service (IaaS) market grew 31.3% in 2018 to total $32.4 billion, up from $24.7 billion in 2017, according to Gartner.

Amazon was once again the No. 1 vendor in the IaaS market in 2018, followed by Microsoft, Alibaba, Google and IBM.

“Despite strong growth across the board, the cloud market’s consolidation favors the large and dominant providers, with smaller and niche providers losing share,” said Sid Nag, research vice president at Gartner.

“This is an indication that scalability matters when it comes to the public cloud IaaS business. Only those providers who invest capital expenditure in building out data centers at scale across multiple regions will succeed and continue to capture market share. Offering rich feature functionality across the cloud technology stack will be the ticket to success, as well.”

In 2018, the top five IaaS providers accounted for nearly 77% of the global IaaS market, up from less than 73% in 2017.

Market consolidation will continue through 2019, driven by the high rate of growth for the top providers, which experienced aggregate growth of 39% from 2017 to 2018 compared with the more modest growth of 11% for all other providers during the same period.

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

Amazon continued to lead the worldwide IaaS market with an estimated $15.5 billion of revenue in 2018, up 27% percent from 2017.

The largest of the IaaS providers, Amazon accounts for nearly half of the total IaaS market. It continues to aggressively expand into new IT markets via new services, as well as acquisitions, growing its core cloud business.

 

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