The online retailer’s profitable cloud platform, Amazon Web Services (AWS), has established itself as an early leader in the market for cloud infrastructure and is still ahead in the list. The reports from Synergy Research Group estimate that Amazon’s market share in the worldwide cloud infrastructure market amounted to 32 percent in the first quarter of 2023, continuing a slight downward trend that saw its market share slip from 34 percent in Q3 2022, to 33 percent in Q4 2022. At the very time, Microsoft gained two points since Q3 2022 and now sits at 23 percent market share, gradually taking away the lead from Amazon.
Global cloud infrastructure service spending in Q1 2023 increased by more than $10 billion compared to Q1 2022, and brought total spending to $63.7 billion for the first three months of this year. Having a look at the trailing twelve months, the cloud market is now a $237-billion opportunity, clarifying why it is so severely contested. As the infographic used here shows, Amazon, Microsoft and Google accounted for two thirds of cloud infrastructure revenues in the three months ended March 31, with the eight largest providers controlling almost 80 percent of the market.
John Dinsdale, chief analyst at Synergy Research Group said:
"There has been some angst about declining cloud growth rates, but the Q1 worldwide market value grew by more than $10 billion compared with the first quarter of 2022. Clearly the relatively weak economy has caused some enterprises to more closely review spending on cloud services, but the market continues to grow despite those challenges,"
Dinsdale further added and warned,
"The law of large numbers pretty much dictates that growth rates must decline, but in absolute terms the market continues to grow at a healthy rate, driven by the fundamental benefits of cloud adoption."
Infographic by: statista