In the cloud infrastructure market last year, Amazon Web Services (AWS) and Microsoft (MS) Azure took over 50% of the total market share, forming a two-top structure. AWS maintained a 30% market share, firmly maintaining the No. 1 position, and Microsoft Azure secured a 20% market share for the first time, pulling the rein in the pursuit.
As the entire cloud infrastructure market is growing as the cloud transition is accelerated in all industries due to the Corona 19 pandemic (pandemic), all companies running in the middle and low ranks including Google Cloud also recorded significant sales growth. Opportunity continued.
According to the ‘2020 Cloud Infrastructure Market Report’ released by market research firm Canalis, in the fourth quarter of last year, AWS kept the first place with 31% market share, Microsoft Azure ranked second with 20%, and Google Cloud 3 with 7%. Took the place.
AWS has steadily maintained a market share of over 30% over the past 4 years. The market share in the fourth quarter decreased slightly compared to the same period of the previous year (32.4%), but the sales volume grew by 28% compared to the previous year, showing off its potential as the No. 1 company in the market. AWS recorded sales of $12.7 billion (about 14.15 trillion won) in the fourth quarter of last year, and $45.37 billion (about 50 billion won) of appetizer sales last year.
Microsoft Azure recorded a 20% market share for the first time this quarter, marking an important milestone in the cloud race. During the same period last year, the share was 17.6%. Microsoft Azure sales of Microsoft Azure this quarter grew more than 50% year-on-year. Azure continued to grow by 47% in the previous quarter and around 50% each quarter.
Google Cloud held 7% of the market share this quarter and maintained its position in the Big Three. The market share in the fourth quarter of the previous year was 6%, and the fact that it only increased its market share by 1 percentage point (p) for one year was somewhat regrettable. Revenue was $3.83 billion, including both cloud infrastructure and workplace (collaborative SaaS). This is a 46.5% increase from the same period last year. Last year’s total sales were $13 billion, up 47% from the previous year. The amount of operating loss was disclosed for the first time at the time of the announcement of the results, and it was found that operating loss amounted to $1.24 billion in the fourth quarter and a total of $5.6 billion last year. Both quarterly and total operating losses have increased slightly compared to the same period last year.
Last year’s cloud infrastructure market trend is the most striking change in the formation of a two-top structure between AWS and Microsoft Azure. The combined share of AWS and Microsoft Azure now exceeds 50%. The structure of the two companies leading the market was formed.
In particular, despite the growth of competitors, AWS maintained its 30% share, which shows that Microsoft Azure and Google Cloud did not take away AWS share, but grew by absorbing demand from lower level companies.
It should also be noted that as the entire cloud infrastructure market is exploding, there are still ample business opportunities for subordinate companies.
According to Canalis, the total cloud infrastructure market last year was $144 billion, up 34.5% from $17 billion a year earlier. In the fourth quarter alone, it reached 39.9 billion dollars, an increase of 33% year-on-year.
Canalis interpreted that the growth of the cloud market last year was related to the increase in non-face-to-face demand due to Corona 19. “The cloud infrastructure market has grown with increasing demand in remote work and distance learning, e-commerce, content streaming, online games, and collaboration.”
The size of the cloud infrastructure market announced last year by Synergy Research Group also shows similar figures. Synergy analyzed that the market size was estimated at 37.1 billion won in the fourth quarter of last year and reached 36% compared to the same period last year. The total market in 2020 is estimated to reach $129 billion.
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Synergy Research Group noted that the cloud infrastructure market is growing unusually fast. “The cloud infrastructure market has doubled in size in just nine quarters, and it has surpassed the year-on-year growth rate for the second consecutive quarter,” he said. “This high-speed growth is exceptional.”
“AWS and Microsoft have seen a tendency to expand their market influence, but AWS and MicrosoftExcept for the remaining companies, the number of cloud companies still has opportunities as they have grown by more than 30% per year.”