Global IaaS market reached $32.4 billion in 2018, total growth was 31.3%

01 Août, 2019, 04:42 | Auteur: Auguste Feret
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The cloud infrastructure-as-a-service market continued its rapid growth in 2018, according to new research released by Gartner Inc. today, as spending reached $32.4 billion globally.

The research agency says that Amazon retains the top spot as an IaaS provider due to the AWS Elastic Compute Service, followed by Microsoft, Alibaba, Google, and IBM.

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

Gartner research vice president Sid Nag said Google Cloud's surge was something to watch out for. "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 centres 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", it said.

Gartner expects market consolidation to continue through most of this year, mostly because the top providers will keep on growing.

"Consolidation will occur as organizations and developers look for standardised, broadly supported platforms for developing and hosting cloud applications", said Mr Nag.

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Amazon is the largest of the IaaS providers, Amazon accounts for almost half of the total IaaS market. It now holds nearly half of the entire market, and continues to "aggressively expand" into new markets, Gartner says.

Microsoft has secured 15.5 percent of market share, an increase from 12.7 percent in 2017, generating over $5 billion a year ago.

Microsoft secured the No. 2 position in the IaaS market with revenue surpassing United States dollars 5 billion in 2018, up from USD 3.1 billion in 2017.

The thirst for infrastructure as a service (IaaS) services continues to grow, but the industry has become dominated by major providers and this may hamper competition in the future.

While Alibaba Cloud experienced the highest growth among leading vendors, growing 92.6% in 2018, its $2.5 billion earnings put it in third place. The company - which is the dominant IaaS provider in China - has built an ecosystem of managed service providers (MSPs) and independent software vendors (ISVs). Its success a year ago was driven by aggressive R&D investment in its portfolio of offerings, especially compared with its hyperscale provider counterparts. Alibaba has the financial capacity to continue growing and invest in global expansion.

Google grew 60.2% in revenue from 2017.

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