Amazon dominates cloud infrastructure market - but new challengers emerging

Amazon Web Services continues to top the infrastructure-as-a-service market, but the sector's upstarts are in the ascendant.

Amazon Web Services (AWS) has retained its position as the market leader in the cloud infrastructure services market, according to analysts.

The Synergy Research Group ranked the top three market leaders in various segments of the cloud infrastructure services market, calculating Amazon's share of infrastructure-as-a-service (IaaS) to be 36 percent in the fourth quarter of 2012.

IBM and BT were a considerable distance behind AWS for the quarter, with six percent and four percent respectively. 

Salesforce retained its dominant position in the platform-as-a-service (PaaS) market, with a 20 percent share. The company revealed yesterday that it  plans to raise $1bn  to help make acquisitions and strengthen its market position. Salesforce was closely followed by AWS and Microsoft which have 18 percent and 16 percent respectively.  

Revenues created by cloud infrastructure services grew 15 percent during 2012, reaching $12.5bn (£8.39bn) for the year. 

IaaS and PaaS only count for 15 percent of the total infrastructure services market, but both are growing much faster than the other segments, which include content delivery network (CDN), colocation, and managed hosting.

CDN market leaders are Akamai, followed by Level 3 and Amazon, according to the research. Equinix leads in the colocation market with more than 10 percent of the market share, while Savvis and SunGard both have just shy of five percent. 

In the managed hosting sector, Rackspace led with about five percent of the market, followed by Verizon and NTT who both had just over four percent.

Synergy Research director John Dinsdale, said a battle for market share is developing.

Traditional telcos are strong in the more mature managed hosting segment — accounting for eight of the top ten operators, but their impact on the IaaS and PaaS segments has so far been muted. "We have no doubts that they will more aggressively target those segments in the coming years," he said.