Cloud Services a $6 Billion per Quarter Market: Synergy Research

In case the recent spate of positive earnings from Amazon and Microsoft haven’t already made it clear, new data from the Synergy Research Group confirms that the cloud computing market is on a tear.

“There is a good reason why AWS [Amazon Web Services] and Microsoft were able to announce such strong cloud results last week,” said John Dinsdale, a chief analyst and research director at Synergy Research, in a research note sent to Datamation. “The market just passed $6 billion in quarterly revenues and the growth rate is increasing – and the dominant top four cloud providers are all benefitting greatly.”

Cloud Storage and Backup Benefits

Protecting your company’s data is critical. Cloud storage with automated backup is scalable, flexible and provides peace of mind. Cobalt Iron’s enterprise-grade backup and recovery solution is known for its hands-free automation and reliability, at a lower cost. Cloud backup that just works.

SCHEDULE FREE CONSULT/DEMO

That quartet includes AWS, Microsoft, IBM and Google. AWS is the cloud leader with nearly a third of the market. All four command more than half of the worldwide market for cloud infrastructure services, according to Synergy.

These market-leading cloud companies aren’t “merely passive beneficiaries,” Dinsdale noted. “They are aggressively launching ever more services that target a broader range of IT workloads and applications,” suggesting that they are investing heavily to expand their capabilities and win over enterprise customers.

During the past four quarters, infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) hybrid and private cloud providers generated over $21 billion in revenues. While they may be catching up to AWS, both Microsoft and Google have revenue growth rates of over 100 percent.

Overall, the market seems to have recovered from a taxing cloud price war and largely shaken off some of the economic factors inhibiting higher sales, observed Dinsdale in a statement. “In early 2014 market growth was somewhat stymied by overly aggressive price competition and more recently there have been some headwinds caused by the strengthening dollar, but we are now seeing a truer picture of the underlying growth in cloud usage.”

Although the cloud may be old hat to some, there’s nowhere for the market to go but up, predicted Dinsdale.

“It might be tempting to think of cloud technologies as now being relatively mature, but the truth is that this is a market which is still in its very early stages of development,” he remarked. “As the leading cloud operators continue to launch an impressive array of new services we will continue to see a huge swing away from traditional IT practices to a world that will be dominated by the cloud.”

Pedro Hernandez is a contributing editor at Datamation. Follow him on Twitter @ecoINSITE.

Photo courtesy of Shutterstock.

RELATED NEWS AND ANALYSIS

• Ethics and Artificial Intelligence: Driving Greater Equality

  FEATURE |  By James Maguire,
  December 16, 2020

• AI vs. Machine Learning vs. Deep Learning

  FEATURE |  By Cynthia Harvey,
  December 11, 2020

• Huawei’s AI Update: Things Are Moving Faster Than We Think

  FEATURE |  By Rob Enderle,
  December 04, 2020

• Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  November 18, 2020

• Key Trends in Chatbots and RPA

  FEATURE |  By Guest Author,
  November 10, 2020

• Top 10 AIOps Companies

  FEATURE |  By Samuel Greengard,
  November 05, 2020

• What is Text Analysis?

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  November 02, 2020

• How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  October 29, 2020

• Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  October 23, 2020

• The Super Moderator, or How IBM Project Debater Could Save Social Media

  FEATURE |  By Rob Enderle,
  October 16, 2020

• Top 10 Chatbot Platforms

  FEATURE |  By Cynthia Harvey,
  October 07, 2020

• Finding a Career Path in AI

  ARTIFICIAL INTELLIGENCE |  By Guest Author,
  October 05, 2020

• CIOs Discuss the Promise of AI and Data Science

  FEATURE |  By Guest Author,
  September 25, 2020

• Microsoft Is Building An AI Product That Could Predict The Future

  FEATURE |  By Rob Enderle,
  September 25, 2020

• Top 10 Machine Learning Companies 2021

  FEATURE |  By Cynthia Harvey,
  September 22, 2020

• NVIDIA and ARM: Massively Changing The AI Landscape

  ARTIFICIAL INTELLIGENCE |  By Rob Enderle,
  September 18, 2020

• Continuous Intelligence: Expert Discussion [Video and Podcast]

  ARTIFICIAL INTELLIGENCE |  By James Maguire,
  September 14, 2020

• Artificial Intelligence: Governance and Ethics [Video]

  ARTIFICIAL INTELLIGENCE |  By James Maguire,
  September 13, 2020

• IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI

  FEATURE |  By Rob Enderle,
  September 11, 2020

• Artificial Intelligence: Perception vs. Reality

  FEATURE |  By James Maguire,
  September 09, 2020