Gartner says the worldwide infrastructure as a service (IaaS) market grew 31.3% in 2018 to total $32.4 billion, up from $24.7 billion in 2017.
Sid Nag, research vice president at Gartner says 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.”
Gartner’s Nag predicts consolidation to continue in 2019 driven by the desire for standardisation, broadly supported platforms for developing and hosting cloud applications.
Table 1: Worldwide IaaS public cloud services market share, 2017-2018 (Millions of U.S. Dollars)
|
Company |
2018 Revenue |
2018 Market Share (%) |
2017 Revenue |
2017 Market Share (%) |
2018-2017 Growth (%) |
| Amazon | 15,495 | 47.8 | 12,221 | 49.4 | 26.8 |
| Microsoft | 5,038 | 15.5 | 3,130 | 12.7 | 60.9 |
| Alibaba | 2,499 | 7.7 | 1,298 | 5.3 | 92.6 |
| 1,314 | 4.0 | 820 | 3.3 | 60.2 | |
| IBM | 577 | 1.8 | 463 | 1.9 | 24.7 |
| Others | 7,519 | 23.2 | 6,768 | 27.4 | 11.1 |
| Total | 32,441 | 100.0 | 24,699 | 100.0 | 31.3 |
Source: Gartner (July 2019)
“As the cloud business continues to gather momentum and hyperscale cloud providers consolidate the market, product managers at cloud MSPs must look at other ways to differentiate, such as focusing on vertical industries and getting certified in the hyperscale cloud provider partner programs in order to drive revenue,” said Nag.
