Home Applications Gartner Says Worldwide IaaS Public Cloud Services Market Grew 31 Percent in 2016

Gartner Says Worldwide IaaS Public Cloud Services Market Grew 31 Percent in 2016

0
Gartner Says Worldwide IaaS Public Cloud Services Market Grew 31 Percent in 2016
0

Analysts to Explore Latest Cloud Trends at the Gartner Global Infrastructure & Operations Events in London, Las Vegas and Orlando

The worldwide infrastructure as a service (IaaS) public cloud market grew 31 percent in 2016 to total $22.1 billion, up from $16.8 billion in 2015, according to Gartner, Inc.. Amazon was the No. 1 vendor in the IaaS market in 2016, followed by Microsoft and Alibaba.

“The market for cloud services is growing faster than virtually every other IT market today, with much of this growth coming at the expense of the traditional, noncloud offerings,” said Sid Nag, research director at Gartner. “The demand for cloud-based IaaS continues on its path of aggressive growth, and the high growth of IaaS is also driving growth in related cloud markets. While platform as a service (PaaS) and software as a service (SaaS) are also exhibiting strong growth, IaaS is expected to show the fastest growth over the next five years.”

Within the IaaS market, there is significant above-market growth for the big three hyperscale IaaS cloud providers. While Amazon Web Services dominated the market in 2016, Microsoft Azure gained more momentum, and Google made some gains. Looking forward, Gartner’s position is that while competitive pressures increase, Amazon will witness growth erosion in share, as the non-hyperscale providers struggle to provide value through their services, while other IaaS market leaders will see an increase in growth.

Amazon is the clear leader in the IaaS market with 44.2 percent of the market (see Table 1). Amazon has achieved this position by serving the most customers across the broadest range of use cases — from cloud-native startups, to midmarket businesses wanting to lift and shift traditional applications, to enterprises executing transformational migrations to the cloud.

Table 1. IaaS Public Cloud Services Market Share, 2015-2016 (Millions of U.S. Dollars)

Company

2016

Revenue

2016 Market

Share (%)

2015

Revenue

2015 Market Share (%)

2016-2015 Growth (%)

Amazon

9,775

44.2

6,698

39.8

45.9

Microsoft

1,579

7.1

980

5.8

61.1

Alibaba

675

3.0

298

1.8

126.5

Google

500

2.3

250

1.5

100.0

Rackspace

484

2.2

461

2.7

5.0

Others

9,147

41.2

8,074

48.4

13.2

Total

22,160

100.0

16,861

100.0

31.4

Note: 2015-2016 revenue for Alibaba has been adjusted from estimates previously published in “Market Share: IT Services, 2016”

Source: Gartner (September 2017)

Microsoft secured the No. 2 position in the IaaS market with 7.1 percent market share, an increase of 61.1 percent over 2015. Microsoft solidified its position as a leading IaaS provider through focused investment in the development of IaaS capabilities and in solid sales and marketing execution.

In the third spot, Alibaba’s 2016 growth of 127 percent reflects the company’s position as the current volume leader and dominant player in the cloud services market in China. Actively expanding its international footprint, it also announced in 2016 the launch of four new data centers located in Europe, Australia, the Middle East and Japan.

“The worldwide public cloud service market growth continues, driven by digital business initiatives, data center consolidations and application migrations to the cloud,” said Mr. Nag. “Technology strategic planners must build both relevant offerings and partner-based ecosystems to seize the opportunity.”

Gartner clients can learn more at in the report “Market Share Analysis: Public Cloud Services, Worldwide, 2016.”

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner’s comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries. For more information, visit www.gartner.com.

Categories:
Gartner Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

Share your view, leave a comment below:

Featured Resources:

Related Articles:

| LATEST FEATURED RESOURCES

White Papers

    ‘All You Need to Know About Microsoft Windows Nano Server’ Veeam White Paper

    Now updated for Windows Server 2016 GA release! You probably heard about Windows Nano Server already … but what is it exactly, and how do you get started with it? What value will it bring to your environment? Nano Server is a headless, 64-bit only deployment option for Windows Server 2016. Microsoft created this component specifically with […]

    Downloads

      Download Commvault VM Backup and Recovery: end-to-end VM backup, recovery and cloud management

      Commvault’s ability to provide end-to-end VM backup, recovery and cloud management creates a significantly better way to build, protect and optimize VMs throughout their lifecycle. Our best-in-class software for VM backup, recovery and cloud management delivers a number of significant benefits, including: VM recovery with live recovery options; backup to and in the cloud; custom-fit […]

      On-Demand Webinars

        Proactive Management of Citrix End User Experience in a Hybrid IT Environment – On-Demand Webinar

        Goliath Technologies Citrix Ready verified products help organizations proactively manage their Citrix environments, whether on-premise or in the cloud. In this webinar, you will hear from Citrix Virtualization Experts how Goliath solutions can confirm that Citrix applications and desktops are available prior to end users logging on to ensure a seamless end user experience. You […]

        Latest Videos

          Microsoft Ignite Session Video: Ask Me Anything: Michael Niehaus on Windows 10 management, deployment and more

          Microsoft Ignite Session: THR2242 Moving to Windows 10 and have questions? Join Michael Niehaus for answers to your questions about Windows 10 deployment options, how to think about the Windows as a Service model in a nutshell and the tools you can use to monitor and manage all aspects in Windows. This video is from […]

          Views All IT News on DABCC.com
          Views All IT Videos on DABCC.com
          Win a Tesla P100D

          Visit Our Sponsors

          Close