Cloud market share
Amazon Leads the Race to the Cloud
When people think of Amazon, they think of e-commerce, of books, maybe of music and video streaming. What most people don’t think of is the hidden business that fuels (and finances) many of Amazon’s more prominent activities. Amazon Web Services (AWS), the company’s cloud infrastructure business catering to other companies, has quickly grown from a smaller side business to a billion-dollar success and the main driver of Amazon’s sparse profit. In Q4 2016, Amazon’s cloud arm generated $3.5 billion in revenue and accounted for more than 70 percent of the company’s $1.3 billion operating profit.
As our chart illustrates, Amazon has established itself as the firm leader in the rapidly growing market for cloud infrastructure services. As more and more companies make their move to the cloud, demand for cloud infrastructure has risen sharply over the past few years and Amazon was one of the first companies to capitalize on that trend. According to estimates by Synergy Research Group, AWS accounts for 40 percent of global revenues in the segment, with its largest competitors Microsoft, Google and IBM taking 23 percent of the market – combined.
According to Amazon’s CFO Brian Olsavsky, AWS caters to a “very balanced group” of customers, from startups to small businesses, large enterprises and the public sector. Among them are global players such as Netflix, Samsung, BMW, Spotify and NASA.
- Amazon Web Services: quarterly revenue 2014-2017Amazon Web Services: quarterly revenue 2014-2017
- Amazon Web Services: year-on-year growth 2014-2017, by quarterAmazon Web Services: year-on-year growth 2014-2017, by quarter
- Amazon Web Services: annual revenue 2013-2016Amazon Web Services: annual revenue 2013-2016
- Public IT cloud services: global market growth 2011-2020Public IT cloud services: global market growth 2011-2020
- Public cloud services: market forecast 2009-2020Public cloud services: market forecast 2009-2020
- Public cloud revenue globally 2012-2026Public cloud revenue globally 2012-2026
- Global public cloud revenue forecast 2012-2026, by segment Global public cloud revenue forecast 2012-2026, by segment
- Global true private cloud revenue 2015, by vendorGlobal true private cloud revenue 2015, by vendor
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