The world’s 12 largest cloud providers by market share

In this article, we take a look at 12 of the largest cloud service providers by market share in the world. If you want to see more of the largest cloud service providers by market share in the world, go directly to The world’s top 5 cloud service providers by market share.

Cloud computing is a growing sector.

In cloud computing, there are two sectors, both of which are growing, cloud infrastructure as a service or IaaS, and software as a service or SaaS.

In terms of cloud infrastructure as a service, there are not many large infrastructure as a cloud service providers in the world due to the large seed capital needed to compete in this space. Given cloud infrastructure as a service is very competitive with many of the biggest players constantly lowering their fees for a processing unit, only the biggest players are making money. As a leader, Amazon Web Services accounts for a large percentage of Amazon’s total revenue. Meanwhile, large cloud service providers like Google Cloud are still losing money trying to increase their market share.

Regarding the cloud software as a service market, the market can be said to be less competitive because it is more fragmented. Since many customers sign up for the software as service providers, there is also the potential for recurring revenue.

Third quarter 2022 cloud infrastructure services industry growth

While very competitive, the market for cloud infrastructure services is huge.

According to Synergy Research Group, total enterprise spending on cloud infrastructure services in the third quarter of 2022 increased by more than $11 billion from the third quarter of 2021 to more than $57 billion. During the quarter, the top cloud market was very concentrated with the top three players Amazon, Microsoft and Google holding about two-thirds of the market share globally of the cloud infrastructure services market.

Synergy Research Group senior analyst John Dinsdale said of the industry’s third-quarter results, “It’s a strong testament to the benefits of cloud computing that despite two major hurdles to growth, the global market is still expanding 24% from a year ago. If exchange rates had remained stable And had the Chinese market stayed on a more normal trajectory, the growth rate ratio would have been in the 30s. All three leading cloud service providers report their financials in US dollars, so their growth rates are being beaten by the historical strength of their local currency.”

In terms of individual growth rates, Amazon Web Services expanded 27.5% YoY, Microsoft Azure expanded 35% YoY, and Google Cloud Platform grew 38% YoY.

Due to growth in the third quarter, the 12-month delayed revenue from the cloud infrastructure services market was $217 billion, according to Synergy Research Group estimates.

Due to rising interest rates and macroeconomic uncertainty with a possible recession, some companies have become more cautious with their spending and overall industrial spending for the period was lower than some estimates.

future growth

Given the long-term tailwinds in the industry, analysts expect the cloud infrastructure as a service market to grow exponentially in the future. According to Research and Market, the global cloud computing market could grow at a compound annual growth rate of 15.7% from 2022 to 2030 to pass more than $1.55 trillion by 2030 as more companies turn to cloud computing for cost savings and flexibility.

One of the reasons for the hugely anticipated growth is the processing of artificial intelligence. As AI applications such as ChatGPT become more popular, so can the demand for cloud computing. Given the amount of cloud computing power needed to make an application as complex as ChatGPT, large cloud technology providers are among the few that can currently provide the processing needed to build an application like ChatGPT.

In 2019, Microsoft invested $1 billion in OpenAI in cash and credits for the Microsoft Azure cloud computing platform. Since ChatGPT has seen huge demand since its launch, the company is said to be looking to raise capital at a valuation of around $30 billion. Once the capital is raised, it is likely that a large amount will be spent on cloud processing to make ChatGPT better, which may bring more business to Microsoft.

methodology

For our list of the 12 largest cloud service providers by market share in the world, we only include market shares of cloud infrastructure as a service market and not software as a service market because they are two different markets.

We ranked cloud service providers based on their market shares in the cloud infrastructure services market which includes platform-as-a-service, infrastructure-as-a-service, and hosted private cloud services according to Synergy Research Group in the third quarter of 2022.

Since their infrastructure as services market share is less than 2%, we just ranked Dell Cloud, VMware Cloud, Huawei Cloud and Baidu Cloud as <2% market share.

For those interested, also check out the 15 Most Innovative Companies in the World.

The world’s 12 largest cloud providers by market share

12. Baidu AI cloud

Global market share in the third quarter of 2022: <2%

Baidu AI Cloud is the cloud computing service of Chinese internet search company Baidu. According to the company, it provides computing, storage, networking, CDN, database, big data, and security services. In 2021, Baidu AI Cloud has about 9% market share in China’s cloud infrastructure service spending market, ranking fourth after Alibaba Cloud, Huawei Cloud and Tencent Cloud. Because the cloud market size in China is large, Baidu AI Cloud is one of the largest IaaS cloud companies globally.

11. VMware

Global market share in the third quarter of 2022: <2%

VMware Cloud Infrastructure Services is a product of VMware, a leading multi-cloud provider that enables digital innovation with enterprise control. Originally part of Dell Technologies after the latter’s acquisition of EMC Corp in 2015, VMware spun off from Dell Technologies in November of 2021 so that the company could have more strategic flexibility to grow faster by gaining more freedom to invest in cloud computing.

10. Dell Technologies

Global market share in the third quarter of 2022: <2%

In addition to PC manufacturing, Dell Technologies also provides Infrastructure as a Service through Dell Technologies Cloud. According to the company, “Dell Technologies Cloud IaaS model has been invaluable to enterprises. By providing fully managed servers, storage, networking, and other computing resources and making them accessible over the Internet, IaaS offerings allow companies to avoid the cost and complexity of purchasing and managing their own infrastructure.”

9. Huawei Cloud

Global market share in the third quarter of 2022: <2%

Huawei Cloud is a cloud infrastructure computing service provided by Chinese technology company Huawei. Given its market share in China, Huawei Cloud probably ranks higher on this list, but we listed it at number nine because Synergy Research Group did not rank it among the top eight cloud infrastructure service providers globally in Q3 2022. According to China Internet Watch, Huawei Cloud has 18% market share in China’s cloud infrastructure service spending in 2021, more than 16% in Tencent Cloud, and Baidu AI Cloud 9%. However, since the company is private, it is difficult to say how much market share it currently has but it certainly ranks among the leading companies.

8. Oracle Cloud

Global market share in Q3 2022: 2%

Oracle Cloud is an IaaS offering from Oracle Corporation for the database and enterprise software maker with about 2% of the global market share. In the second quarter of fiscal 2023, Oracle’s IaaS sales were up 53% year-over-year to $1 billion, which is actually slightly faster than the overall industry growth. One reason for the rapid growth could be that TikTok directed 100% of its US app users’ traffic to Oracle Cloud Infrastructure as of June 2022. TikTok previously used its own data centers for US traffic.

7. Tencent Cloud

Global market share in Q3 2022: 2%

Tencent Cloud is a cloud computing service provided by the Chinese social media giant Tencent. According to the company, Tencent cloud has many software developers from many different industries that use it including Tencent’s WeChat messaging app. In terms of market share, Tencent Cloud has a market share of 16% in the cloud infrastructure services industry in China in 2021 and a market share of about 2% in the worldwide cloud infrastructure services market in the third quarter of 2022.

6. Salesforce

Global market share in Q3 2022: 3%

In addition to being a leading SaaS provider, Salesforce Inc offers a platform as a service solution that “allows companies to easily deploy, run, and manage custom cloud applications without the complexity of building and maintaining their own servers and infrastructure.” With its Salesforce platform and other services, Salesforce has a global market share of 3% in the cloud infrastructure services market in the third quarter of 2022.

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Disclosure: None. The world’s 12 largest cloud providers by market share Originally posted on Insider Monkey.

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