The latest Canalys Research report has revealed the share of Amazon Web Services (AWS), Microsoft Azure and Google Cloud in the cloud infrastructure services market during the third quarter of 2019.
The cloud infrastructure services revenue rose 37 percent in Q3 2019 to $27.5 billion, said the Canalys Research report.
AWS retained its top position, with growth of $2.3 billion equal to the year-on-year increase of the next three players combined. AWS’ rise of 35 percent represented another consecutive quarter of slowing growth.
Microsoft Azure grew 59 percent in the cloud infrastructure services market. AWS’ Cloud market share slipped, taking it below 33 percent. Azure’s cloud infrastructure services market share rose to 17 percent.
Google Cloud’s accelerated, up 69 percent at $1.9 billion.
Microsoft’s win over AWS to secure the JEDI cloud contract worth $10 billion over 10 years with the US Defense Department, partly reflects the US government’s strategy to spread risk across multiple providers, an approach now adopted by many enterprises.
“This balancing creates a huge demand for channel partners to provide consulting, migration, integration and management services across multiple platforms,” said Daniel Liu, Canalys Research Analyst.
Alastair Edwards, chief analyst at Canalys, said: “Microsoft has built new partnerships with Oracle, VMware and most recently SAP, which give it greater credibility with enterprises as core applications are migrated to the cloud.”
Google’s strategy to focus on specific applications and verticals, combined with a major investment in internal sales and partner resources, is designed to make it more relevant to enterprise customers and partners, particularly vertically aligned systems integrators. Google has continued to open new cloud data center regions.
“The largest systems integrators are investing in partnerships and building business practices with all three of the top cloud providers – AWS, Microsoft and more recently Google Cloud – recognizing that their customers want support across all the major platforms. Other channel partners are increasingly doing the same,” Alastair Edwards said.
At this month’s Canalys Channels Forum in Barcelona, Canalys predicted that AWS will be a top four on-premises server vendor in the US and Western Europe within three years. Partners will play a critical role in sizing and deploying Outposts for hybrid IT customers.
While Microsoft and Google have established partnerships with VMware to allow VMs to migrate to their cloud platforms, AWS retains a firm lead with VMware on AWS, a lucrative solution for partners.
With number four global cloud provider Alibaba extending its reach into distribution around the world, and IBM strengthening its multi-cloud management proposition for partners with Red Hat, 2020 will be a critical year for cloud channels.
The leading four providers of public cloud services accounted for 72 percent of the market for IaaS and PaaS in Q3, Synergy Research Group said.
Total spending on public IaaS and PaaS reached $20 billion in Q3, representing over 80 percent of the total cloud infrastructure services.