Amazon still dominates the $16 billion cloud market

Jeff Bezos Michael Seto/Business InsiderAmazon CEO Jeff Bezos

Cloud computing, where companies rent computers hosted elsewhere, is the biggest change to enterprise tech since the PC.

And the company that more or less invented the concept, Amazon, is still far and away the dominant leader of a market that generated $US16 billion for its biggest players, says market research firm Synergy Research Group.

Synergy reports:

  • Amazon has 30% market share, compared to the next biggest player, Microsoft, with about 10%.
  • Microsoft is growing the fastest, a 96% year-over-year leap, with Google close behind: 87% year-over-year growth.
  • IBM is leading what’s known as the “hybrid cloud market.” That refers to when enterprises use the same cloud technologies in their own private data centres and also use a cloud provider.

It makes sense that IBM is leading the hybrid camp among this crop of vendors because it’s the only one of the bunch that sells computer hardware. IBM says that between its cloud services and the hardware it sells to companies to build their own clouds, cloud computing became a $US7 billion business for the company in 2014.

The good news for all concerned: it’s still early days for cloud computing, as $US16 billion is only a tiny fraction of the almost $US4 trillion that companies spend on tech annually worldwide.

Here’s how Synergy saw the fourth quarter of 2014 shape up:

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

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