Will AWS lose Cloud market share to Google and Microsoft?

Amazon Web Services (AWS) needs to lower cloud adoption barriers to maintain leadership position, says analyst firm Globaldata.

Amazon recently announced new complex services at the annual AWS summit in San Francisco. But the cloud giant’s messaging fell short of mapping to actual costs, causing confusion among some of the developers and systems admins attending the technology conference.

During some conference sessions, users quizzed panel members about how much cloud migration projects would cost, the sort of internal expertise required, and whether traditional systems admins are up to the task of implementing a new devops model.

Speakers admitted that cloud migration projects were extremely complex, with one Amazon customer presenter suggesting that enterprise systems admins needed to basically transform into python developers.
Cloud infrastructure share Q1 2018Charlotte Dunlap, technology analyst at GlobalData, says: “Amazon has not gone far enough to acknowledge enterprises’ need to make a gradual move from on-premises, data center-based it operations to cloud-based operations.”

Amazon’s rivals, including Microsoft, IBM and Oracle, are able to resonate with customers’ operations teams looking to make gradual moves to the cloud, initially through private/hybrid cloud scenarios.

Amazon is already at a disadvantage compared to traditional software providers with their mature professional services organizations. The company relies heavily on partners to provide customers with support for digital transformation projects that require on-premises data center support and verticalized, specific use case solutions.

Amazon needs to lower the barriers to cloud adoption by pre-building as much functionality as it can for specific use cases to the benefit of both customers and channel partners. otherwise it will lose out to closest cloud rivals Google and Microsoft.

AWS grows

Synergy Research Group said spend on cloud infrastructure services surged 51 percent in Q1 2018.

Market leader Amazon was a major contributing factor, as growth of its AWS division was also the highest achieved since late 2016. AWS worldwide market share has held steady at around 33 percent for twelve quarters now, even as the market has almost tripled in size.

Microsoft, Google and Alibaba have all substantially grown their market shares, but this has not been at the expense of AWS.

The small-to-medium sized cloud operators have seen drop in their market share. Meanwhile IBM market share has been relatively stable at around 8 percent, thanks primarily to its strong leadership in hosted private cloud services.

Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) have reached almost $15 billion. The Q1 growth rate of 51 percent compares with a full-year 2017 growth rate of 44 percent and a 2016 growth rate of 50 percent.

Public IaaS and PaaS services, which account for the bulk of the market, achieved 56 percent growth in Q1, said John Dinsdale, chief analyst and research director at Synergy Research Group.

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