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Infrastructure as a Service: Four Vendors Dominate IaaS Market

By Dick Weisinger

Four vendors dominate the Cloud Computing Infrastructure as a Service (IaaS) market, according to a study by Gartner: Amazon AWS, Microsoft, Alibaba, and Google.  The global IaaS market grew nearly 30 percent in 2017, reaching $23.5 billion.

Sid Nag, research director at Gartner, said that these “top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organizations and as cloud availability expands into new regions and countries. Cloud-directed IT spending now constitutes more than 20% of the total IT budget for organizations using cloud. Many of these organizations are now using cloud to support production environments and business-critical operations.”

The top four vendors constitute 73 percent of the total market.  The breakdown is: AWS at 52 percent, Microsoft at 13 percent, Alibaba at 4.6 percent and Google at 3.3 percent.  AWS lost a couple of percentage points this year and Microsoft has shown very strong growth: Microsoft’s IaaS sector business grew at 98 percent in 2017.

The growth in the IaaS business was attributed not only to businesses migrating from data centers to the cloud, but also by businesses that are adopting digital business projects.

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