Amazon Dominates Global IaaS Market, Microsoft Comes in Second: Gartner

Amazon was the leading vendor in the Infrastrucure-as-a-Service (IaaS) public Cloud services market in 2016 with 44.2 percent share, leaving Microsoft, Alibaba, Google and others far behind, market research firm Gartner said on Wednesday.

According to Gartner, the worldwide IaaS public Cloud market grew 31 percent in 2016 amounting to $22.1 billion (roughly Rs. 1,45,251 crores) - up from $16.8 billion in 2015.

Amazon served the maximum customers across the broadest range of use cases, from Cloud-native startups to mid-market businesses to big enterprises.

"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, non-Cloud offerings," said Sid Nag, Research Director, Gartner, in a statement.

"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," Nag added.

However, Gartner predicted that 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.

Microsoft secured the second position in the IaaS market with 7.1 percent market share -- an increase of 61.1 per cent over 2015.

At the third spot stood China-based Alibaba, with three percent market share, marking a growth of 127 percent, which reflected the company's position as the current volume leader in China.

Google stood at the fourth position with 2.3 percent market share.