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Cloud spending becoming more concentrated among the big guns: AWS, Microsoft Azure, Google Cloud

In IaaS and PaaS the top five vendors accounted for 63% of all spending, according to IDC data.
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Written by Larry Dignan on

Public cloud spending is increasingly being concentrated among the top five providers and the consolidation of wallet share is even more intense in infrastructure- and platform-as-a-service, according to IDC data.

IDC reported that the top five public cloud providers accounted for 46.3% of all spending growth in 2018 and 35% of all spending overall. In IaaS and PaaS the top five vendors accounted for 63% of all spending.

SEE: Top cloud providers 2019: AWS, Microsoft Azure, Google Cloud; IBM makes hybrid move; Salesforce dominates SaaS

This consolidation of cloud spending comes as the market growth continues to surge. Global public cloud services grew 27.4% in 2018 to total $183 billion.

SaaS is most deployed and accounts for 62.4% of total cloud market revenue.

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The consolidation of cloud spending isn't that surprising given the recent spate of earnings from the likes of Amazon Web Services, Microsoft and Google. All three reported strong cloud revenue growth and run rates. Meanwhile, the concentration among the big three is even more notable when one has an issue and big chunks of the web go down. 

And in SaaS, the market is also concentrated with vendors ranging from Salesforce to Oracle, Workday, SAP and Microsoft as well as Adobe.

In the end, the cloud market will be multicloud, but the options won't be endless. Most enterprises will have one or two strategic cloud vendors with other suppliers integrated into the mix.

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