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Microsoft Left Behind by AWS, What’s New?

Amazon Web Services is totally dominating the global infrastructure-as-a-service market, with 44.2 percent of the action, according to a new Gartner survey. AWS is followed at a long distance behind by Microsoft Azure with just seven percent of the market, while in third place with three percent is Jack Ma’s Alibaba, which Gartner notes opened a datacentre in Australia last year.

In fourth place with just 2.3pc was Google.

“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, a Gartner research director.

“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 AWS heavily dominated the market in 2016, Microsoft Azure gained “more momentum,”and Google made “some gains”, Gartner says, kindly.

Despite its huge lead, Gartner predicts that Amazon will witness future “growth erosion” in market share, as non-hyperscale providers struggle to provide value through their services, while other IaaS market leaders will see an increase in growth.

Nag notes that Amazon has achieved its top spot by serving the most customers across the broadest range of use cases – from cloud-native start-ups to mid-market businesses wanting to lift and shift traditional applications, and to enterprises executing “transformational migrations” to the cloud.

His advice: “Technology strategic planners must build both relevant offerings and partner-based ecosystems to seize the opportunity.”

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