Synergy Research Group says leading cloud providers in Q2 2024 are Amazon 32 percent, Microsoft 23 percent, Google 12 percent, Alibaba 4 percent, Salesforce 3 percent, Oracle 3 percent, IBM 2 percent, Tencent 2 percent and Huawei 2 percent.
Other companies who have a market share of 1 percent include Baidu, China Telecom, China Unicom, Fujitsu, NTT, Snowflake, SAP, Rackspace and VMware.
Enterprise spending on cloud infrastructure services reached $79 billion worldwide in the second quarter of 2024, marking an increase of $14.1 billion or 22 percent from the same period in 2023. This period represents the third consecutive quarter with a year-on-year growth rate of 20 percent or more, partly fueled by the adoption of generative AI technologies.
“We are now seeing more normalized growth of the cloud market, though some speed bumps do remain. As one example, were it not for a strengthened US dollar, the Q2 growth rate would have been around one point five percentage points higher,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
Despite facing economic, currency, and political challenges, the market’s fundamental strength continues to drive cloud service spending to new highs.
In terms of market positioning, Amazon maintains a dominant lead, though both Microsoft and Google recorded higher percentage growth rates. Amazon’s market share stood at 32 percent, followed by Microsoft at 23 percent and Google at 12 percent. The growth rates of these major players have increased significantly since mid-2023.
Among the tier-two providers, Oracle, Huawei, Snowflake, and MongoDB showed the highest year-on-year growth rates. Oracle, in particular, surpassed IBM this quarter and is now tied with Salesforce as the fifth-largest cloud provider.
With most major cloud providers having released their Q2 earnings data, Synergy Research estimates quarterly cloud infrastructure service revenues, including IaaS, PaaS, and hosted private cloud services, at $79.1 billion. The trailing twelve-month revenues reached $297 billion. Public IaaS and PaaS services, which constitute the bulk of the market, grew by 23 percent in Q2. The dominance of major cloud providers is especially pronounced in the public cloud sector, where the top three providers account for 73 percent of the market.
Geographically, the cloud market continues to grow robustly across all regions. The APAC region recorded the strongest growth when measured in local currencies, with India, Japan, Australia, and South Korea each growing by 25 percent or more year over year. The US remains the largest cloud market by a wide margin, growing by 22 percent in Q2, outpacing the entire APAC region in scale. In Europe, the UK and Germany are the largest cloud markets, while Ireland, Italy, and Spain exhibited the highest growth rates.
