Microsoft and IBM Gain on Amazon in Cloud Revenue Growth

In last week, according to a report by Synergy Research Group, Microsoft and IBM are growing faster than Amazon Web Services, with 164 percent and 86 percent revenue growth rates over the past year. AWS year-on-year growth rate drop to 49%, while Google grew with an increase of 47 percent.

“It has become clear that AWS finally has some tough competition to face” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “Until this quarter it could claim that it was bigger than its four nearest competitors, but now at least one jewel has fallen from its crown. While it remains a formidable leader of the market, Microsoft is making some huge strides in IaaS and PaaS while IBM now has clear leadership in the private & hybrid infrastructure services segment.”



Both IBM and Microsoft claim quarterly cloud revenues of around USD 1 billion, mostly cloud revenue comes from software/SaaS, cloud-related hardware products or associated professional and technical services.

According to new Q2 earnings data, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) have reached USD 3.7 billion, with trailing twelve-month revenues comfortably exceeding $13 billion.

With the total market growing at over 45 percent, Microsoft and IBM have gained market share over the last four quarters while the share of AWS and Google is essentially unchanged from a year ago. Total Amazon AWS revenues are now well in excess of $1 billion per quarter, in which much of the cloud revenue comes from cloud infrastructure services.

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