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Cloud market: Q3 2019 in numbers

Written by Thu 31 Oct 2019

It’s the end of October, which means it’s time to round up the performance of the top three cloud providers: AWS, Azure and Google Cloud

Over the last quarter, the global cloud market enjoyed a typically healthy 37 percent growth, Canalys reports.

But yet again there were subtle shifts in the tectonic plates of the cloud hierarchy. For the second quarter running, AWS, cloud leader supreme, reported slowing growth. With 35 percent growth and $2.3 billion revenue rise, AWS is hardly on its knees. But if we take a look at the chasing pack, there are signs the market’s typically extreme imbalance might be heading for mild stabilisation.

Directly behind AWS sits Microsoft Azure, which enjoyed a whopping 59 percent growth. This and Google Cloud’s 69 percent growth have nibbled into AWS market share, taking it below 33 percent. Azure and Google’s shares of the global cloud market are 16.9 percent and 6.9 percent, respectively.

Over the past year, all three providers have rushed to serve enterprises’  hybrid and multi-cloud needs. On the hybrid battlefield AWS is leading the charge, and the launch of the company’s on-premises Outposts server this year will add further ammunition. While Microsoft and Google have announced partnerships with VMware to facilitate enterprise migration to their respective clouds, VMware on AWS remains the leading integration with legacy VMs. Nevertheless, Google’s launch of Anthos, a hybrid cloud solution based on Kubernetes, will no doubt increasingly appeal to organisations seeking consistent management of both containerised and legacy applications.

The real opportunity for Google and Microsoft lies in multi-cloud. But how the spoils of end-user cloud diversification will be shared remains to be seen. Cloud-smart and cloud-confident companies are now choosing the right cloud for the right application, with the added benefit of spreading cloud investment risk. Microsoft won a major battle in this war by thwarting AWS to secure the US Defense’s JEDI cloud contract, worth $10 billion over the next decade. Google and Microsoft will be hopeful of securing further sizable contracts before the year’s end.

“This balancing creates a huge demand for channel partners to provide consulting, migration, integration and management services across multiple platforms,” said Daniel Liu, Canalys Research Analyst. “The channel is becoming a new catalyst for continued growth for hyperscale cloud service providers, particularly as competition intensifies.”

“Success will increasingly be defined by the technology alliances forged by the cloud providers, as well as developing relationships with key channel categories,” added Alastair Edwards, Chief Analyst at Canalys. “Microsoft has built new partnerships with Oracle, VMware and most recently SAP, which give it greater credibility with enterprises as core applications are migrated to the cloud.”

Written by Thu 31 Oct 2019

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