Home Four leading cloud infrastructure vendors account for 67% share of all $129-billion market
Finance News

Four leading cloud infrastructure vendors account for 67% share of all $129-billion market

Fact Checked
Fact Checked
Everything you read on our site is provided by expert writers who have many years of experience in the financial markets and have written for other top financial publications. Every piece of information here is fact-checked. We sometimes use affiliate links in our content, when clicking on those we might receive a commission - at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
We do our best to help you make intelligent financial decisions. Tradingplatforms.com is compensated if you access certain products or services offered by eToro USA LLC and/or eToro USA Securities Inc. and other brokerage companies. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. This however does not affect our assessments of the brokers, their features, and their overall rating.

Last year was a monumental year for the cloud infrastructure sector as leading service providers recorded significant and steady growth.

According to data researched by Trading Platforms, the top four cloud infrastructure vendors accounted for 67% of the market share during Q4 2020. Amazon Web Services had the largest percentage at 32%, followed by Microsoft Azure at 20%. Google cloud had a share of 9%, while Alibaba Cloud accounted for 6%.

In 2020, the global cloud infrastructure service providers registered revenue amounting to $129 billion. Between Q1 and Q4, the revenue increased by 19.35%, from $31 billion to $37 billion. The revenue was by leading service providers including Amazon AWS, Google Cloud, Microsoft Azure, Alibaba Cloud, IBM Cloud, Salesforce, Tencent Cloud, Oracle Cloud.

!function(e,i,n,s){var t=”InfogramEmbeds”,d=e.getElementsByTagName(“script”)[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(“script”);o.async=1,o.id=n,o.src=”https://e.infogram.com/js/dist/embed-loader-min.js”,d.parentNode.insertBefore(o,d)}}(document,0,”infogram-async”);

Pandemic spurs increased demand in cloud infrastructure

The coronavirus pandemic accelerated the cloud’s market share, and revenue growth as practices like remote working, video conferencing, eCommerce, content streaming, online gaming, and collaboration gained popularity. Simultaneously, the gradual recovery of the economy from Q2 stimulated cloud investments by organizations in all industry segments to drive digital transformation.

Most businesses realized that the cloud was a leading digital transformation engine that improves continuity of work. With work going remote, most tasks were primarily done on cloud infrastructure. The cloud infrastructure is segmented into Infrastructure as a Service (IaaS), platform as a service (PaaS), and Software as a Service (SaaS)

Amazon Web Services and Microsoft Azure accounted for more than half of cloud infrastructure revenues and market share last year. The analysis shows that AWS plateaued at around 32% while Microsoft Azure is gradually rising to catch up.

Although cloud service providers largely benefitted from the pandemic, they also felt the negative effect of the health crisis between Q1 and Q2 as an investment in sectors like hospitality, aviation, construction, tourism, and manufacturing was scaled down or delayed. The derailment impacted the growth enjoyed during the first half of the year. Before the pandemic, the highlighted sectors are known to initiate large consulting projects like SAP migrations and hybrid cloud deployments.

Ability to adapt to increased consumption

The four service providers’ ability to increase their market share and revenue in 2020 stems from a quick shift to adapt to the surge in consumption. For example, Microsoft rolled out an emergency plan, which included adding new server capacity to its data centers. Google Cloud opened four new cloud data centers in Asia, Canada, and the Middle East.

Although four providers dominate the market, small players are expected to make a statement across 2021. These smaller service providers will likely focus on specific market niches to offer a broader range of cloud services.

Justinas Baltrusaitis Finance Writer

Justinas Baltrusaitis Finance Writer

Justin is an editor, writer, and decentralized finance enthusiast. He spent many years writing about banking, finances, blockchain, and digital assets-related news. He strives to serve the untold stories for the readers. Justin's work has featured in a wide range of online publications, including Bankr, StockApps.com, Muck Rack, Inside Bitcoins, GlobalResearch, and Buyshares, and LearnBonds.

As well as writing content in the finance space, Justin is an active investor who is able to understand financial news and make predictions based upon his analysis of events. Justin has a good understanding of trading platforms and charting tools and has first-hand experience with many of the platforms that we cover on tradingPlatforms.com. This enables him to write content that is based off of his own experiences as well as meticulous research.