The 12 largest cloud providers by market share in the world
In this article, we take a look at the 12 largest cloud providers by market share in the world. If you want to see more of the largest cloud providers by market share in the world, go directly to Top 5 largest cloud providers by market share in the world.
Cloud computing is a growing sector.
In cloud computing, there are two sectors, both growing, cloud infrastructure as a service or IaaS and software as a service or SaaS.
In terms of cloud infrastructure as a service, there aren’t many large cloud infrastructure as a service providers in the world given the substantial start-up capital required to be competitive in the field. Considering that cloud infrastructure as a service is very competitive, with many of the biggest players constantly lowering their fees for a processing unit, only the biggest players are profitable. As the leader, Amazon Web Services accounts for a substantial percentage of Amazon’s total revenue. Meanwhile, big cloud providers like Google Cloud continue to lose money in an effort to gain market share.
In terms of the cloud software as a service market, the market is arguably less competitive as it is more segmented. Since many customers subscribe to software-as-a-service providers, there is also recurring revenue potential.
Growth of the cloud infrastructure services industry in the third quarter of 2022
Although very competitive, the market for cloud infrastructure services is huge.
According to Synergy Research Group, total business spending on cloud infrastructure services in Q3 2022 increased more than $11 billion from Q3 2021 to more than $57 billion. During the quarter, the cloud market at the top was highly concentrated, with the top three players Amazon, Microsoft and Google holding around two-thirds of the market share globally in the infrastructure services market in Cloud.
Synergy Research Group chief analyst John Dinsdale said of the third quarter industry results: “It is strong testament to the benefits of cloud computing that, despite two major obstacles to growth, the market global expansion by 24% compared to last year. If exchange rates had remained stable and the Chinese market had remained on a more normal path, the percentage growth rate would have been well into the 1930s. All three of the leading cloud providers report their financials in US dollars, so their growth rates are affected by the historical strength of their local currency.”
In terms of their individual growth rates, Amazon Web Services expanded 27.5% year-over-year, Microsoft Azure expanded 35% year-over-year, and Google Cloud Platform grew 38% year-over-year.
Given the growth in the third quarter, revenue for the last twelve months of the cloud infrastructure services market reached $217 billion according to Synergy Research Group estimates.
Given rising interest rates and macroeconomic uncertainty with a potential recession, some companies have become more cautious in their spending and overall industry spending over the period was lower than some estimates.
future growth
Given the long-term industry tailwinds, analysts expect the cloud infrastructure as a services market to grow substantially in the future. According to Research and Market, the global cloud computing market could grow at an average CAGR of 15.7% between 2022 and 2030 to exceed $1.55 trillion by 2030 as more companies switch to cloud computing. the cloud for cost savings and flexibility.
One reason for substantially more expected growth is AI processing. As AI applications like ChatGPT gain more popularity, the demand for cloud computing could grow further. Considering the amount of cloud computing power required to build an application as sophisticated as ChatGPT, tech-heavy cloud providers are among the few companies that can currently offer the processing required to build an application like ChatGPT.
In 2019, Microsoft invested $1 billion in OpenAI in the form of cash and credits for Microsoft’s Azure cloud computing platform. With ChatGPT having seen substantial demand since its launch, the company is reportedly looking to raise more capital with a valuation of around $30 billion. Once it raises more capital, a substantial amount will likely be spent on cloud processing to make ChatGPT even better, which could lead to more business for Microsoft.
Methodology
For our list of the 12 largest cloud providers by market share in the world, we list only the market shares of the cloud infrastructure as a services market and not the software as a service market because they are two different markets.
We rank cloud providers based on their market shares in the cloud infrastructure services market, which includes platform-as-a-service, infrastructure-as-a-service, and hosted private cloud services. according to Synergy Research Group in the third quarter of 2022.
Because their infrastructure-as-a-service market share is less than 2%, we rate Dell Cloud, VMware Cloud, Huawei Cloud, and Baidu Cloud as having <2% market share.
For those of you interested, see also The 15 most innovative companies in the world.
The 12 largest cloud providers by market share in the world
12. Baidu Cloud AI
Global market share in Q3 2022: <2%
Baidu AI Cloud is the cloud computing service of the Chinese Internet search company Baidu. According to the company, it provides compute and storage, network and CDN, database, big data, and security services. In 2021, Baidu AI Cloud had a market share of around 9% in China’s cloud infrastructure services spend market, ranking fourth after Alibaba Cloud, Huawei Cloud and Tencent Cloud. Because the size of China’s cloud market is considerable, Baidu AI Cloud is one of the largest IaaS cloud companies in the world.
11.vmware
Global market share in Q3 2022: <2%
VMware Cloud Infrastructure Services are one of the products of VMware, which is a leading provider of multi-cloud services that enable digital innovation with enterprise control. Originally part of Dell Technologies after the latter’s acquisition of EMC Corp in 2015, VMware was spun off from Dell Technologies in November 2021 so the company could have more strategic flexibility to potentially grow faster while gaining more freedom to invest. in cloud computing.
10.Dell Technologies
Global market share in Q3 2022: <2%
In addition to manufacturing PCs, Dell Technologies also provides infrastructure as a service with Dell Technologies Cloud. According to the company, “Dell Technologies’ cloud IaaS model has been invaluable to businesses. By provisioning and making fully managed servers, storage, networks and other computing resources accessible over the Internet, offerings of IaaS allow companies to avoid the cost and complexity of buying and managing their own infrastructure.”
9. Huawei Cloud
Global market share in Q3 2022: <2%
Huawei Cloud is the cloud infrastructure computing service provided by the Chinese technology company Huawei. Given its market share in China, Huawei Cloud could rank higher on this list, but we included it at number 9 because Synergy Research Group did not rank it among the top eight global cloud infrastructure service providers in the world. Q3 2022. According to China Internet Watch, Huawei Cloud had an 18% market share of China’s cloud infrastructure services spending in 2021, more than Tencent Cloud’s 16% and Baidu’s 9%. AI Cloud. However, since the company is private, it is difficult to determine how much market share it currently has, but it is certainly among the leaders.
8. Oracle Cloud
Global market share in Q3 2022: 2%
Oracle Cloud is the IaaS offering of Oracle Corporation, a maker of databases and enterprise software, where it has a global market share of about 2%. In the second quarter of fiscal 2023, Oracle Corporation’s IaaS sales increased 53% year-over-year to $1 billion, which is actually slightly faster than overall industry growth. One reason for the rapid growth could be that TikTok routed 100% of the app’s US user traffic to Oracle Cloud Infrastructure starting in June 2022. TikTok previously used its own data centers for traffic USA
7.Tencent Cloud
Global market share in Q3 2022: 2%
Tencent Cloud is a cloud computing service provided by the Chinese social media giant Tencent. According to the company, Tencent’s cloud has numerous software developers from many different industries using it, including Tencent’s own WeChat messaging app. In terms of market share, Tencent Cloud had a 16% market share in China’s cloud infrastructure services industry in 2021 and a market share of around 2% in the infrastructure services market in China. cloud worldwide in the third quarter of 2022.
6. Sales force
Global market share in Q3 2022: 3%
In addition to being a leading SaaS provider, Salesforce Inc offers a platform-as-a-service solution that “enables businesses to easily deploy, run, and manage custom applications in the cloud without the complexity of building and maintaining their own servers and infrastructure.” With its Salesforce platform and other services, Salesforce has a 3% global market share of the cloud infrastructure services market as of Q3 2022.
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Disclosure: none. The 12 largest cloud providers by market share in the world was originally published on Insider Monkey.