Led by Amazon, the five hyperscalers occupy 80% of the IaaS market
Gartner Inc. The latest poll The Public Cloud Infrastructure (IAAS) market as a service shows that the segment grew 41.4% in 2021, totaling 90.9 billion, up from $ 64.3 billion a year. Amazon is still followed by Microsoft and Alibaba, the premier IAAS providers in the survey. Google and Huawei are in fourth and fifth place respectively. Together, the top five IaaS providers account for more than 80% of the entire market, Gartner reports.
IaaS enables enterprise IT to outsource cloud computing network infrastructure such as physical computing resources, scaling and security. Examples of IaaS include Amazon EC2, Microsoft Azure Virtual Machines and Google Compute Engine. IaaS costs have increased dramatically year after year, driven by new trends in hybrid cloud and hybrid workforce solutions. As enterprises digitize their operations in the cloud, IaaS sales are expected to increase.
The numbers reinforce Amazon’s IaaS dominance: the company had 38.9% of the global public cloud IaaS market share in 2021, or about $ 35.58 billion in revenue. Microsoft followed with $ 19.153 billion or 21.1%, with Alibaba reporting $ 8.679 billion in revenue for about 9.5% of the market. Google and Huawei are in the top five with 6.436 7.1 and 4.6% shares, respectively.
Gartner says Microsoft’s dominance in enterprise IT enables it to capture the growth of its Azure platform in new vertical markets. Alibaba, meanwhile, is leading the growing Chinese cloud market – the report said, which will help Alibaba dominate the emerging Pacific Rim cloud market in Indonesia, Malaysia and elsewhere.
Google Cloud, however, has been rewarded for the highest growth rate, growing 63.7% in 2021, or 6.4 billion in revenue.
“This growth is driven by the continued growth of traditional enterprise workloads as well as Google’s innovations in more advanced capabilities such as artificial intelligence and Cubernet container technology, supported by the expansion of their partner ecosystem to reach a wider customer base,” Gartner said.
Gartner singled out Huawei for praise, pointing to the Chinese manufacturer’s focus on open hardware, open-source software and strategic partnerships.
Seed Nag, Gartner’s VP analyst, says the continued growth underscores the continuity of cloud-native workloads as the primary modern IT architecture.
“The cloud supports the scalability and integration that is needed for advanced technology and applications, as well as enabling enterprises to address emerging needs such as sovereignty, data integration and improved customer experience,” Nag said.
Gartner continues to lose the “composibility” drum as a key cloud service differentiator for business. In Gartner’s words, enterprise composibility is “a set of mindsets, technologies and operating capabilities that enable organizations to innovate and adapt quickly to changing business needs. It is built on the application of the basic principles of modality in business assets to achieve the scale and speed required for business ambition. “
Nag claims that the next phase of public cloud IaaS growth will focus on improving the customer experience and achieving business-driven digital results. Oh, and Metavers too. This is also important.
“Emerging technologies that can help businesses bring experiences closer to their customers, such as metavers, chatbots and digital twins, will require hyperscale infrastructure to meet the growing demand for computers and storage power,” Nag said.