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Amazon's AWS Hits Highest in Cloud Market in 5 Years, Synergy Research Shows

Amazon's AWS

Large online companies such as Amazon, Microsoft, Google, IBM among several others, building and using their own cloud service makes a lot of sense. This does not only help cut on outsourcing expenses, but also gives the company total control over how to manage their services.

Since 2006, Amazon has been offering its cloud service, Amazon Web Service (AWS) to the public. Since then, the company has been expanding in efforts to increase profits and allow it to make its mark in another high profile arena.

Just last year, Amazon recorded its highest share of cloud infrastructure service in five years despite the strong growth of Microsoft in the cloud computing market, a Synergy Research has revealed. The Amazon Web Service had a 51% year-over-year growth. Its 25% growth in revenue between the third and fourth quarters of 2014 raised its global market share to about 30%.

Microsoft had a strong third quarter, managing to record the highest year-over-year growth in revenue- 96%, but this wasn’t enough to topple over Amazon eventually. Microsoft was in second place with a market share of about 11%.

Even with an 81% year over year growth in revenue, the Synergy Research revealed that Google advanced could not claim third place which was occupied by IBM that has roughly 7% share of the market. Google on the other hand, has a 5% claim of the market.

John Dinsdale, the chief analyst, observed that the apparent obstacles to adopting cloud have been reduced and the global market’s growth is positive. John also noted that AWS and Microsoft have built tremendous momentum and have an ever-increasing portfolio of services.

The Research also estimated that the total quarterly cloud market service revenues are almost hitting the $5 billion mark. Global revenue for the whole of 2014 which saw a 48% year-over-year growth, surpassed $16 billion.

Moor Insights and Strategy analyst Patrick Moorhead, shared his views, noting that Amazon Website Service had a head-start in the market which put it in a great position against its rivals.

“AWS’ five year head-start put it in a great position, so this does not surprise me at all”, said Moorhead. “They have the most comprehensive offering of anyone. Big companies such as Instagram and Netflix have previously used or are currently using Amazon Website Service. If you are starting to build an infrastructure from nothing and are not concerned about being locked into Amazon’s API, you must consider them as a possibility”, he added.  You can find common mistakes to avoid in AWS in this Video.

Moorhead was also keen to note that even though Google is making tremendous progress in the market, the giant search engine lacks the background Microsoft has.

*Image courtesy Flickr Creative Commons

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