Tech giants lag behind Amazon in IaaS: report

Staff writer
03 Dec 2013

The three global IT giants, namely Microsoft, IBM and Google, continue to lag far behind Amazon in the IaaS/PaaS market, despite all of the firms achieving strong growth and despite IBM’s acquisition of SoftLayer, a new research said.

Third quarter data from Synergy Research Group showed that even after adding the PaaS revenues of, in aggregate the group lags some 15% behind Amazon in terms of IaaS/PaaS revenues.

In a worldwide market that grew 46% from third quarter of 2012, Amazon grew by 55% and increased its overall market share.

Total IaaS/PaaS revenues for the quarter passed the $2.5 billion milestone, with IaaS accounting for the lion’s share at 64%. North America accounted for 53% of the second quarter market, with EMEA and APAC each accounting for 21% and Latin America 5%.

Amazon is the clear market leader in each of the four regions, though the ranking of the chasing pack does differ by region. Associated infrastructure service markets all grew in the quarter, but much more slowly than IaaS and PaaS. Managed hosting revenues grew by 3% year on year, retail colocation grew by 8% and CDN by 14%.


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