Gartner: AWS Rules Booming Public-IaaS Cloud Market

The Infrastructure as a Service space (IaaS), is experiencing aggressive growth driven by hyperscale cloud vendors like Amazon Web Services (AWS), and Microsoft Azure.
This is the conclusion of Gartner Inc.’s newly released data. Gartner Inc. released a number of findings Tuesday. One was that the global public cloud-based IaaS market earned $22.1 billion in 2016, a 31% increase over 2015.
According to Gartner research director Sig Nag, IaaS also outpaced other “as a services” categories (PaaS and Software as Service) and will continue to do so for the next five years.
Nag stated that “the demand for cloud-based IaaS keeps on its path to aggressive growth” and that the high growth of IaaS also drives growth in related cloud markets.
Based on Gartner’s data, AWS was the undisputed leader in public IaaS in 2016, with a global market share at 44 percent.
[Click on the image to see a larger view.] IaaS market share in public cloud services, 2015-2016 with revenues in millions of dollars. Source: Gartner. Gartner attributes AWS’ dominance in the cloud services market to its ability to accommodate “the widest range of use cases,” which includes startups that were born-in the cloud, businesses that are transitioning to the cloud, and large enterprises.
Azure came in at a distant No. 2 with 7 per cent of the market, but its year-overyear growth of 61 percent was greater than that of AWS (46%). Gartner praised Microsoft’s continued investments in IaaS capabilities as well as its “solid marketing and sales execution.”
No. China-based Alibaba came in at No. 3, just ahead of Google. Although Alibaba only accounted for 3 percent of the global public IaaS marketplace in 2016, its growth was phenomenal at 127 percent annually. Fourth-place Google had impressive year-over–year growth in 2016, nearly doubling its cloud earnings but only 2% of the global market.
Gartner predicts that AWS will “experience growth erosion in share” as other hyperscale platforms improve their service offerings.