FD Insights Issue 12 | Page 28

Amazon Web Services (AWS) AWS’ Extraordinary Market Dominance Amazon’s cloud computing platform has an iron grip on the market, and shows no sign of letting go anytime soon. I n perhaps a shining example of how being first to market can foster competitive advantage, AWS is remarkably dominant in the cloud computing industry. According to research conducted early last year by Synergy Research, AWS’ overall market share was at 28%, compared to Microsoft’s 10%, IBM at 7%, Google at 5%, Salesforce 4%, and Rackspace 3%. Year on year growth saw Microsoft (96%) and Google (88%) the biggest climbers, with Amazon (51%) and IBM (48%) holding steady. Gartner’s Magic Quadrant for Cloud Infrastructure paints a similarly rosy picture for AWS. As James Maguire writes on webopedia.com, “The level of dominance Amazon Web Services (AWS) has in the cloud market can hardly be overstated. While Microsoft holds a respectable number two position, the cloud market can be summed as ‘there’s Amazon, and then there’s everyone else.’ Most of the other vendors could disappear and the vast bulk of the cloud market would remain.” including enterprise and mission-critical applications. It is the overwhelming market share leader, with over 10 times more cloud IaaS compute capacity in use than the aggregate total of t H