Home Hot TopicsCloud Computing Worldwide IaaS public cloud market saw fast growth in 2019

Worldwide IaaS public cloud market saw fast growth in 2019

by CIO AXIS

The worldwide infrastructure as a service (IaaS) market grew 37.3% in 2019 to total $44.5 billion, up from $32.4 billion in 2018, according to Gartner. Amazon retained the No. 1 position in the IaaS market in 2019, followed by Microsoft, Alibaba, Google and Tencent.

“Cloud underpins the push to digital business, which remains at the top of CIOs’ agendas,” said Sid Nag, research vice president at Gartner. “It enables technologies such as the edge, AI, machine learning and 5G, among others. At the end of the day, each of these technologies require a scalable, elastic and high-capacity infrastructure platform like public cloud IaaS, which is why the market witnessed strong growth.”

In 2019, the top five IaaS providers accounted for 80% of the market, up from 77% in 2018. Three-quarters of all IaaS providers exhibited growth in 2018.

Amazon continued to lead the worldwide IaaS market with an estimated $20 billion of revenue in 2019 and 45% of the total market. Amazon leveraged its No.1 spot in 2018 to build out its capabilities beyond the IaaS layer in the cloud stack and maintain its top position in 2019.

Microsoft remained in the No. 2 position in the IaaS market with more than half of its nearly $8 billion in revenue coming from North America. Microsoft’s IaaS offering grew 57.8% in 2019, as the company leveraged its sales reach and ability to co-sell its Azure offerings with other Microsoft products and services in order to drive adoption.

The dominant IaaS provider in China, Alibaba Cloud, grew 62.4% in 2019 with revenue surpassing $4 billion, up from $2.5 billion in 2018. Alibaba Group will continue to expand its cloud infrastructure business in the coming years and aim to offer cloud-based intelligent solutions to its customers to support their digital transformation process.

China-based Tencent grew its IaaS offering by over 100% in 2019. It is the second largest provider of cloud services in China, after Alibaba. “As the cloud market matures, and its leaders experience natural market share erosion as a result, China-based providers such as Alibaba, Tencent and Huawei will start to gain more traction. It will also be hard for other providers, such as the North America based cloud providers, to enter the China market given the country’s highly regulated market,” said Nag.

Google’s IaaS revenue grew from $1.3 billion in 2018 to $2.4 billion in 2019, experiencing 80.1% growth. Google’s cloud services focused on providing organizations with industry specific solutions on robust computing infrastructure. North America accounts for nearly half of Google’s IaaS revenue.

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