AWS dominates global IaaS market in 2019


By Dylan Bushell-Embling
Wednesday, 12 August, 2020

AWS dominates global IaaS market in 2019

AWS continued to dominate the US$44.5 billion ($62.14 billion) IaaS public cloud services market in 2019, taking a 45% share, according to the latest estimates from Gartner.

But despite the company growing its total revenue by 29% to US$19.99 billion, the vendor’s substantial lead over its competition narrowed from its market share of 47.9% in 2018.

By contrast, each of the remaining top five vendors increased market share in 2019. Microsoft grew its share to 17.9% from 15.6%, taking in total revenue of US$7.94 billion.

Fourth-ranked Google increased its share to 5.3% from 4.1% and its revenue to US$2.36 billion, while Chinese vendors Alibaba and Tencent lifted their shares to 9.1% and 2.8% respectively.

Together, the top five IaaS providers increased their share of the global market to 80% from 77% over the same period.

Gartner last month estimated that the Australian IaaS market grew 58% last year to $930 million. Spending is meanwhile on track to grow 16.7% in 2020 despite the disruption of COVID-19, echoing a similar growth trend in the global market.

“There will be a continued push of cloud spending as an outcome of the coronavirus pandemic, When enterprises were compelled to move their applications to the public cloud as a result of the pandemic, they realised the true benefits of public cloud and it is unlikely that they will change course,” Gartner Research Vice President Sid Nag said.

“In the recovery and rebound phase, CIOs are recognising that they don’t need to bring workloads back on premises, which will further increase cloud spending and drive new applications around cloud-hosted collaboration that incorporate emerging technologies such as virtual reality and immersive video experiences.”

Image credit: ©stock.adobe.com/au/blackboard

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