A new report from industry research firm Gartner revealed that the combined cloud usage of fourteen competitors including Microsoft Corporation (NASDAQ:MSFT)’s Azure is not enough to match Amazon.com, Inc. (NASDAQ:AMZN)’s Web Services total cloud usage.
Amazon Takes Gigantic Share
The report indicated that Amazon’s cloud usage is ten times the combined usage of its fourteen competitors. Next in the line is Microsoft’s Azure, which has twice the combined usage of its next thirteen sequential competitors. The figure in itself explains the structure of the cloud computing market share, which is completely skewed towards the likes of Amazon and Microsoft.
As the cost of operating self-run data-centers erodes bottom lines, businesses see cost benefits when using Amazon’s Web Services, which has grown to become a $6 billion business. A leading example is Zynga Inc (NASDAQ:ZNGA), which learned its lesson the hard way that Amazon’s Web Services are more cost efficient than running their own data centers. As a result, the gaming company is going back to Amazon for its cloud data needs.
Hard to compete niches
Gartner indicated that Amazon’s Web Services are viewed as ‘safe choice‘ in the cloud computing market as it offers the broadest range of capabilities as well as long-term market leadership. Amazon may not be best suited for some who find Microsoft’s Azure as a more attractive proposition. Azure is a highly integrated cloud computing service that combines with Microsoft’s server and software suites.
Meanwhile, Goolge Inc (NASDAQ:GOOGL)’s Cloud Platform is third in rank. It offers an edge for developing modern applications that are cloud non-native. Other competitors included in the Gartners list are those which have moved on with the fact that competing with Amazon is pointless. Hence, these companies are safely involved in those niches that are tough to compete. For instance, Rackspace Hosting deals with white-glove support while Virtustream helps clients run complicated applications. Still, these cloud computing competitors are way behind Amazon, Microsoft or even Google, and clearly the market share is not expected to change soon.