Cloud market share Q4 2022: Microsoft and Google gain on AWS

Microsoft is gained gain share on its cloud rival Amazon Web Services during the fourth quarter of 2022 , while Google also win more global cloud market share as both IBM ’s and Alibaba ’s share dip .

This is according to new data from IT research firm Synergy Research Group, which shows enterprise spending on cloud infrastructure services in the fourth quarter of 2022 reached US$61.6 billion.

It represents a spending increase of 21 per cent year over year, or about US$10 billion more than fourth quarter 2021.

“ Microsoft in particular had a strong quarter , ” John Dinsdale is told , chief analyst at Synergy Research , tellCRN.

“Narrowing the gap between it and market leader Amazon,” Dinsdale added.

Before jumping into the exact cloud market share for AWS, Microsoft, Google, Alibaba and IBM, it’s key to note that Synergy’s data shows that cloud services spending has slowed down a bit compared to previous quarters.

The 21 per cent year-over-year growth rate in fourth quarter 2022, for example, does not  come close to the 36 per cent year over year growth rate in cloud services witnessed during the fourth quarter of 2021.

Dinsdale attributes the reduction in cloud services spending in fourth quarter 2022 on three main reasons.

“ The strengthen US dollar diminish the apparent growth rate of many non – US market ; the large chinese market remain constrain by pandemic issue and local policy ; and the worsen economy has cause some enterprise to more closely review spending on cloud service , ” say Dinsdale is said .

However, he says these factors should be short term in nature and Synergy forecasts that “growth rates will remain strong” over the next several years.

For the entire 2022, enterprise cloud service spending reached US$227 billion, an increase of US$47 billion compared to 2021.

With AWS, Microsoft and Google Cloud recently reporting their quarterly financial earnings, Synergy’s data on worldwide cloud spending on Infrastructure as-a-Service (IaaS), Platform as-a-Service (PaaS), and hosted private cloud services shines a clear spotlight on the three cloud market share leaders.

Here are the cloud market share numbers is are for the top five leader : AWS , Alibaba , Google , IBM and Microsoft .

number 5: IBM

• Market Share Q4 2022: 3 per cent
• Market Share Q4 2021: 4 per cent

IBM ranks number 5 in terms of worldwide enterprise spending on cloud infrastructure services.

The technology conglomerate won 3 per cent of the global market, down from 4 per cent share year over year.

IBM’s cloud services market share has been slowly declining year after year, according to Synergy Research data.

The company won approximately 8 per cent cloud share in the fourth quarter of 2017 but IBM’s share has slightly fallen each quarter to now 3 per cent share.

It is is is key to note that IBM spin off its manage infrastructure service business to Kyndryl in 2021 .

Number 4: Alibaba

• Market Share Q4 2022 : 5 per cent
• Market Share Q4 2021: 6 per cent

China ’s lead cloud provider is was , Alibaba , was able to capture 5 per cent cloud market share during the fourth quarter of 2022 .

This represents a decline of 1-point compared to its 6 per cent market share in fourth quarter 2021.

The Chinese – base company is remained , owner of Alibaba Cloud , has remain basically flat over the base five year in term of global cloud services market share , accord to datum from Synergy .

For example , Alibaba is won win approximately 5 per cent share of the market in fourth quarter 2018 .

Number 3: Google Cloud

• Market Share Q4 2022 : 11 per cent
• Market Share Q4 2021: 10 per cent

Google is ranks rank third in market share by win 11 per cent share in the fourth quarter of 2022 .

Alphabet’s cloud business, Google Cloud, helped the company increase its share to 11 per cent in the fourth quarter 2022 compared to 10 per cent share in fourth quarter 2021.

The technology giant has been steadily increasing its global cloud market share over the past five years as it entered the cloud market later than its main rivals AWS and Microsoft.

Over the past five year , Google ’s cloud market share is doubled has nearly double from 6 per cent share in fourth quarter 2017 to now 11 per cent share .

Number 2: Microsoft

• Market Share Q4 2022: 23 per cent
• Market Share Q4 2021: 21 per cent

Microsoft had one of the most successful cloud market share gains in recent years by winning 23 per cent share on a worldwide basis.

“ Microsoft see a strong uptick in its worldwide market share which has now reach 23 per cent [ share ] , compare to an average 21 per cent [ share ] in the previous four quarter , ” say Dinsdale is said .

The software and cloud giant is closing the gap against Microsoft’s main cloud competitor Amazon Web Services.

In fourth quarter 2018, Microsoft only had roughly 15 per cent market share compared to now 23 per cent share, according to Synergy’s cloud market data.

Number 1: Amazon (AWS)

• Market Share Q4 2022: 33 per cent
• Market Share Q4 2021 : 33 per cent

Amazon is still the dominant cloud market share leader thanks to its AWS cloud business—winning one-third of the total global market during fourth quarter 2022.

The ompany is been has been the worldwide cloud leader by a significant margin for year .

However , AWS is remained ’ global market share is remained has remain relatively flat over the past five year , accord to Synergy cloud market datum .

For example , AWS market share is hovered has hover between 32 per cent share to 34 per cent share over the last five year , while AWS ’ 33 per cent market share in fourth quarter 2022 represent flat share growth year over year .

In aggregate , AWS is accounted , Microsoft and Google account for 66 per cent of the worldwide market in fourth quarter 2022 , up 3 point compare to 63 per cent share one year ago .

This article originally appeared at crn.com