Canalys and Synergy Research Group have released their latest report on the worldwide cloud infrastructure services market for Q4 2019.
The global cloud infrastructure services spending grew 37 percent to $30 billion in the fourth quarter of 2019. Amazon Web Services (AWS) is the leader in cloud service market in Q4 2019, accounting for 32 percent of total spend.
Microsoft Azure increased its share to 18 percent from 15 percent in the same period in 2018. Google Cloud was the third largest cloud service provider with 6 percent share, followed by Alibaba Cloud with 5 percent.
Cloud expenditure in 2019 exceeded $107 billion, up from $78 billion in 2018 according to Canalys data.
Canalys Chief Analyst Alastair Edwards said: “Many are using a combination of multi-clouds and hybrid IT models, recognizing the strengths of each cloud service provider and the different compute operating environments needed for specific types of workloads.”
Cloud infrastructure services spending will grow 32 percent in 2020 to $141 billion and will reach $284 billion in 2024.
Canalys Principal Analyst Matthew Ball said: Alibaba, Amazon, Baidu, Facebook, Google, Microsoft and Tencent – collectively spent more than $60 billion (+8 percent) in 2019 on data center infrastructure.
Synergy Research Group said Q4 spend on cloud infrastructure services increased by $2.8 billion or 37 percent over the previous quarter, which is by far the biggest quarterly increment the market has seen.
Amazon maintained its 33 percent share of the market. Microsoft grew fast than the market and its market share has increased by almost three percentage points in the last four quarters, reaching 18 percent.
Google, Alibaba and Tencent are outpacing Cloud market growth and are gaining market share. IBM, Salesforce, Oracle and Rackspace have lower growth rates.
Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were well over $27 billion, with full-year 2019 revenues reaching over $96 billion.
Public IaaS and PaaS services account for bulk of the market and those grew by 38 percent in Q4.
“The year ended with a bang as Amazon and Microsoft both posted big sequential gains in cloud revenues,” said John Dinsdale, a Chief Analyst at Synergy Research Group.