New data from TeleGeography partner Synergy Research Group show that cloud infrastructure service revenues grew 15% between Q4 2011 and Q4 2012 to reach USD12.5 billion. Thanks to its significant market share in the high-growth Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) segments, Amazon continues to lead the cloud infrastructure services market.
While revenues associated with the IaaS and PaaS segments account for only 15% of the overall market, their growth clearly outpaces that of all other segments. In the past year, IaaS and PaaS revenues increased 55% and 57%, respectively. Amazon dominates the IaaS segment, accounting for 36% of revenues, and is quickly approaching PaaS leader Salesforce’s 19% market share. Although well behind Akamai and Level 3 in the CDN/ADN segment, Amazon holds the number three spot with a 7% market share.
The more mature managed hosting and colocation segments have substantially lower growth rates, at 6% and 13% respectively, but remain much larger in terms of revenue generated. Combined, they account for 74% of the total market. Rackspace leads the managed hosting segment but is closely followed by Verizon and NTT, while Equinix, Savvis, and SunGard are the colocation market leaders. Across all segments, Amazon is the market leader in North America and NTT leads in the Asia-Pacific region. France Telecom-Orange, British Telecom, and Deutsche Telekom are fighting for the top spot in EMEA.
‘There is a fascinating battle for market share developing,’ said Synergy Research Group’s John Dinsdale. ‘Traditional telcos are strong in the more mature managed hosting segment, where they account 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.’
Synergy Research Group’s Cloud Infrastructure Services research provides data, analysis, and forecasts of the cloud and data centre infrastructure services market.
Synergy Research Group is a strategic partner of TeleGeography, providing market intelligence, analytics and strategic consulting services to the networking and telecom industries.
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