Amazon Leads Cloud Infrastructure Services Market Share, Microsoft Tops In Growth

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Amazon (NASDAQ:AMZN) is the undisputed leader in the global cloud infrastructure services market, with a share of over 31%, while Microsoft is the second-largest player with a share of 10%, closely followed by IBM (NYSE:IBM) with 7% and Google (NASDAQ:GOOGL) with 4-5%. Amazon continues to lead by a wide margin, but Microsoft and Google are slowly gaining share by growing at an impressive pace.amzn-35

The overall cloud infrastructure services market grew at 50% year-over-year (y-o-y) in the first three months this year, with Amazon Web Services (AWS) managing to maintain its market share over the last quarter with a growth rate of 57%, while Microsoft and Google both grew at well over 100% over the prior year quarter. IBM’s growth was in line with the overall market, resulting in 93% combined sales growth for Microsoft, IBM and Google.

It is important to highlight that AWS is the most profitable business division for Amazon, with sales close to $8 billion (2015) growing at over 50% y-o-y with an EBITDA margin of 30%. In comparison, the EBITDA margin for Amazon’s online marketplace business was around 10% last year.

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[Market data source: Synergy Research Group]

 

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