AWS market share increased by one percentage point in the second quarter

New data shows the cloud provider remains the world’s top dog, even as Azure and Google have made inroads.

AWS’ market share grew by more than one percentage point during the second quarter, reaching nearly 34%.

This discovery comes from Synergy Research Group. The company analyzed enterprise spending on cloud infrastructure services for the three months ending June 30. During this assessment, Synergy discovered a higher lead on Amazon Web Services.

That AWS’ market share continues to overtake its rivals is no surprise. For years, the company held the top spot over Microsoft Azure and Google Cloud. However, AWS dominance is not necessarily assured. IDC recently discovered that Azure has overtaken AWS market share, as has vendor Flexera. Research is not bound to agree on the various outlets and, at this point, Synergy has not detected any change in AWS market share for the recently ended second quarter.

Perhaps more interesting is the new information Synergy has found. On the one hand, Google Cloud, long the third-largest public cloud provider, captured more market share in the second quarter of 2022. Synergy called the increase a “significant upside.” Overall, AWS, Azure and Google held a combined 65% share of the global public cloud computing market between April and June, Synergy said. This marked an increase from 61% a year ago.

Turbulence in the currency markets affected the cloud figures

In dollar terms, that 65% ownership translated to nearly $55 billion that companies spent on cloud infrastructure services, according to Synergy. That number represents 29% growth from 2021. And that number holds despite the turmoil in the currency markets, Synergy analysts said.

If exchange rates had remained constant over the past year, the growth rate would have been about six percentage points higher, the firm said.

John Dinsdale of the Synergy Research Group

“As the cloud market continues to rise, the biggest story in the second quarter was about the macro economy rather than actual cloud usage,” said John Dinsdale, chief analyst at Synergy Research Group. “When national market numbers are aggregated in US dollars, the annual growth rate fell by more than six percentage points due to currency movements, with more than half of that reduction attributable to the second quarter alone.”

This indicates that despite their strengths, global cloud providers “are certainly not immune to the impact of continued exchange rate swings,” Dinsdale added.

However, he noted, “the fact remains that the underlying growth in cloud usage continues to grow at truly impressive rates. This has caused a marked acceleration in both the launch of new data centers scale and the level of spending on data center hardware and software. Our forecast shows continued strong growth across all key cloud market metrics.”

Cloud infrastructure, platform as a service are growing – a lot

In total, Synergy estimates that, taking into account hosted private cloud infrastructure, platforms and services, the top cloud providers’ revenues amounted to $54.7 billion. Revenue for the past 12 months hit $205 billion, analysts said. Spending on public infrastructure and platform services increased by 31%.

Other cloud providers — names of which Synergy did not specify — have seen their revenues increase by more than 150% since the start of 2018. However, their collective market share has plunged, Synergy said, from 49% to 35%. The growth rates of these companies (presumably like Alibaba and Tencent) remain well below market leaders, analysts say.

Despite this, demand for cloud computing is growing strongly in all regions of the world, Synergy found. It comes as a small shock. Businesses around the world continue to pursue digital transformation initiatives, particularly in the wake of the COVID-19 pandemic and amid economic uncertainty.

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