Do a quick check of the tech news headlines these days, and you're likely to find quite a few that are trumpeting how well Microsoft is doing in cloud. While Microsoft is growing at an enormous rate, it is still well behind AWS, which continues to completely dominate the market according to the most recent data supplied by Synergy Research Group.
The headline here could be that while Microsoft and Google continue to grow at impressive rates, both are growing from a small number to a somewhat bigger small number. That's easier to do than to grow from a more dominant marketshare as AWS has been doing.
For starters, Microsoft was the big growth winner with 124 percent growth rate year over year, and Google was in second place with 108 percent year over year growth. AWS still grew fairly substantially at 63 percent, IBM was next with 57 percent growth, and Salesforce, which Synergy includes in these numbers, brought up the rear with 40 percent growth.
What we can conclude from these numbers is that the cloud is growing at an enormous rate, and even the slowest growth rate is tremendous by any measure.
Can't Escape That Market Share
That brings us to marketshare, and when it comes to this number, AWS still continues to kick its competitors' behinds. If you doubt it, have a look at the Synergy Research Group chart:
As you can see, with more than 30 percent of the market, AWS is far ahead of its closest competitor. Microsoft is way back in second place at 10 percent. Plus, AWS has more market share than all of its competitors combined.
This chart comparing last year's report to this one shows that Microsoft moved the most, gaining 3 percentage points of market share. That's not to be scoffed at, but it still shows that when you move the needle at the lower end of the market it's going to be a big growth number. The numbers appear to reflect that the overall market is growing because IBM, for instance, had decent growth at 57 percent but didn't actually change market share percentage.
If you're wondering how Synergy Research comes by these numbers, it's through a lot of hard work, according to John Dinsdale, managing director and chief analyst at Synergy.
"Apart from the market model and tracking tools that we have developed, the underlying research methodology is based on a quarterly survey of all major cloud providers in combination with ongoing discussions with/briefing from companies, detailed review of quarterly earnings material, and extensive background research," Dinsdale explained.
So while Microsoft, Google, and IBM are moving the needle, AWS just keeps marching on. As time passes, and the market grows, these companies will continue to grow at big numbers (until they don't). But it becomes ever harder to catch the dominant player, and over time the fight very likely will be about second place.
Photo Credit: Andrew Mager on Flickr. Used under CC by SA 2.0 licensie.