How AWS Dominates The Cloud Market

By Anj Cagay , Feb 15, 2017 03:00 AM EST

Amazon Web Services( also known as AWS) accounts for one-third of the cloud infrastructure market, more than the value generated by its next three largest rivals combined. AWS dominates, with a 33.8 percent global market share, while its three nearest competitors such as Microsoft, Google, and IBM. Altogether accounted for 30.8 percent of the market, calculated by an analyst Canalys.

AWS Dominates And The Biggest Player The Cloud Market

The four leading service providers were followed by Alibaba and Oracle, which made up 2.4 percent and 1.7 percent of the total respectively, with rest of the market made up of a number of smaller players. In Consideration of the competition is the likes of Google, Microsoft, IBM and Oracle; AWS's big lead is even more surprising. The question is how did AWS build such dominance?

How AWS Built A Big Lead

The simple answer is that it was first, but as Andy Jassy in an interview at the University of Washington last week, the AWS CEO said, in some ways, it was a classic case of disruption dynamics. The competition basically didn't believe there was enough of a market to worry about it. Speaking of his rivals, Jassy said they fought really hard as they could against the cloud, making every kind of argument a disrupted company tends to make to convince themselves there was no existential threat to their market dominance, according to a source.

All of this has led to the dominance of AWS in the market, and at this moment the math just makes it hard for the players behind them to outstand AWS. The market will continue to progress, and the major cloud players will continue to display flashy growth numbers, however, AWS built a big lead already by being first and doesn't show any signs of relinquishing that lead anytime soon.


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