Story image

Gartner - IaaS public cloud services market grew 29.5% in 2017

02 Aug 2018

The worldwide infrastructure-as-a-service (IaaS) market grew 29.5% in 2017 to total $23.5 billion, up from $18.2 billion in 2016, according to Gartner.

Amazon was the top vendor in the IaaS market, followed by Microsoft, Alibaba, Google and IBM.

"The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organizations and as cloud availability expands into new regions and countries," says Gartner research director Sid Nag.

"Cloud-directed IT spending now constitutes more than 20% of the total IT budget for organisations using cloud. Many of these organisations are now using cloud to support production environments and business-critical operations."

In the IaaS market, the competitive landscape is consolidating around the leaders.

The top four providers - Amazon, Microsoft, Alibaba and Google - are all hyperscale IaaS providers and represent approximately 73% of the total IaaS market and 47%  of the combined IaaS and infrastructure utility services (IUS) market.

Amazon is the clear leader in the worldwide IaaS market with an estimated $12.2 billion revenue in 2017, up 25%  from 2016.

The largest of the IaaS providers, Amazon, is also the most mature, enterprise-ready provider with the strongest track record of customer success and the most useful partner ecosystem.

Growth in 2017 was driven not only by customers that are migrating from traditional data centres to cloud IaaS, but also by customers implementing transformational digital business projects, reflecting its broad range of use cases.

Microsoft secured the number two position in the IaaS market with growth of more than 98% on its IaaS offering, with revenue surpassing $3.1 billion in 2017.

Microsoft delivers its IaaS capabilities through its Microsoft Azure offering, which is a collection of infrastructure and platform services.

In the third spot, Alibaba's 2017 growth of 63% reflects the company's successful investment in research and development (R&D).

Alibaba has the financial capability to continue this trend and invest in global expansion, giving the company the potential to become over time an alternative to the global hyperscale cloud providers in select regions.

"This reflects a fundamental change in what and how organizations are consuming technology. Some legacy infrastructure offerings, such as IUS, are seeing lower and slower uptake that impacts the combined IaaS and IUS market," adds Nag.

"Additionally, a groundswell of demand for cloud-skilled personnel is forcing technology providers to change how they compete to meet this exploding demand."

How Dell EMC and NVIDIA aim to simplify the AI data centre
Businesses are realising they need AI at scale, and so enterprise IT teams are increasingly inserting themselves into their company’s AI agenda. 
Orange Belgium opens 1,000 sqm Antwerp data centre
It consists of more than 500 high-density 52 unit racks, installed on the equivalent of 12 tennis courts.
Time to build tech on the automobile, not the horse and cart
Nutanix’s Jeff Smith believes one of the core problems of businesses struggling to digitally ‘transform’ lies in the infrastructure they use, the data centre.
Cloud providers increasingly jumping into gaming market
Aa number of major cloud service providers are uniquely placed to capitalise on the lucrative cloud gaming market.
Intel building US’s first exascale supercomputer
Intel and the Department of Energy are building potentially the world’s first exascale supercomputer, capable of a quintillion calculations per second.
NVIDIA announces enterprise servers optimised for data science
“The rapid adoption of T4 on the world’s most popular business servers signals the start of a new era in enterprise computing."
Unencrypted Gearbest database leaves over 1.5mil shoppers’ records exposed
Depending on the countries and information requirements, the data could give hackers access to online government portals, banking apps, and health insurance records.
Storage is all the rage, and SmartNICs are the key
Mellanox’s Kevin Deierling shares the results from a new survey that identifies the key role of the network in boosting data centre performance.