The big get bigger in cloud

Giants grab growing share of services market


If customer spending on cloudy infrastructure and platform services in Q3 was a tin of beans, then a full-bellied AWS might have used the resulting wind to power its bit barns.

The global IaaS and PaaS markets grew to a little more than $10bn during the quarter, up 53 per cent year on year, and AWS accounted for almost one third of that.

This is according to Canalys estimates, which showed Amazon’s cloud subsidiary turned over $3.23bn, up 55 per cent growth on the year ago period, and held 32 per cent market share.

Microsoft Azure hauled in $1.736bn, up 116 per cent, giving it a 17 per cent share of the spoils; Google Cloud hauled in $764m, up 80 per cent year on year, giving it an eight per cent share.

Over at Big Blue, IBM Software sold $654m worth of services, up 51 per cent, and this handed it a seven per cent slice of total market sales, while Chinese outfit Alibaba sold $221m, up 128 per cent and taking a market share of two per cent.

Much like in the world of on-premise tech, the cloud giants keep getting bigger and bigger, equating to 66 per cent of all money splashed on IaaS and PaaS.

Matthew Ball, principal analyst at Canalys, told us that beyond the top five “the remainder of the market is highly fragmented between smaller global providers and more local providers”.

He said the next string includes CenturyLink, Dimension Data, Fujitsu, NTT Communications, Rackspace and Virtustream.

Canalys doesn’t track industry breakdowns in terms of adoptions, but Ball said consumer cloud services/apps continue to make up a large chunk of the cloud market.

“We see applications like dev and test, backup and DR moving to the cloud among most business. Mission-critical applications still remain under the control of IT departments,” he said. ®


Other stories you might like

  • Cheers ransomware hits VMware ESXi systems
    Now we can say extortionware has jumped the shark

    Another ransomware strain is targeting VMware ESXi servers, which have been the focus of extortionists and other miscreants in recent months.

    ESXi, a bare-metal hypervisor used by a broad range of organizations throughout the world, has become the target of such ransomware families as LockBit, Hive, and RansomEXX. The ubiquitous use of the technology, and the size of some companies that use it has made it an efficient way for crooks to infect large numbers of virtualized systems and connected devices and equipment, according to researchers with Trend Micro.

    "ESXi is widely used in enterprise settings for server virtualization," Trend Micro noted in a write-up this week. "It is therefore a popular target for ransomware attacks … Compromising ESXi servers has been a scheme used by some notorious cybercriminal groups because it is a means to swiftly spread the ransomware to many devices."

    Continue reading
  • Twitter founder Dorsey beats hasty retweet from the board
    We'll see you around the Block

    Twitter has officially entered the post-Dorsey age: its founder and two-time CEO's board term expired Wednesday, marking the first time the social media company hasn't had him around in some capacity.

    Jack Dorsey announced his resignation as Twitter chief exec in November 2021, and passed the baton to Parag Agrawal while remaining on the board. Now that board term has ended, and Dorsey has stepped down as expected. Agrawal has taken Dorsey's board seat; Salesforce co-CEO Bret Taylor has assumed the role of Twitter's board chair. 

    In his resignation announcement, Dorsey – who co-founded and is CEO of Block (formerly Square) – said having founders leading the companies they created can be severely limiting for an organization and can serve as a single point of failure. "I believe it's critical a company can stand on its own, free of its founder's influence or direction," Dorsey said. He didn't respond to a request for further comment today. 

    Continue reading
  • Snowflake stock drops as some top customers cut usage
    You might say its valuation is melting away

    IPO darling Snowflake's share price took a beating in an already bearish market for tech stocks after filing weaker than expected financial guidance amid a slowdown in orders from some of its largest customers.

    For its first quarter of fiscal 2023, ended April 30, Snowflake's revenue grew 85 percent year-on-year to $422.4 million. The company made an operating loss of $188.8 million, albeit down from $205.6 million a year ago.

    Although surpassing revenue expectations, the cloud-based data warehousing business saw its valuation tumble 16 percent in extended trading on Wednesday. Its stock price dived from $133 apiece to $117 in after-hours trading, and today is cruising back at $127. That stumble arrived amid a general tech stock sell-off some observers said was overdue.

    Continue reading

Biting the hand that feeds IT © 1998–2022