AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
Amazon Web Services, Microsoft, IBM, Alibaba and Google captured the most cloud market share during third quarter 2023 as worldwide spending on cloud infrastructure services surpassed $68bn.
In aggregate, AWS, Microsoft and Google Cloud won a whopping 66 per cent share of the worldwide cloud market in Q3 2023 as the three tech giants continue to tussle for leadership, according to new data from Synergy Research Group.
Worldwide enterprise cloud infrastructure services spending increased by $10.5bn year-over-year in third quarter 2023, representing an 18 per cent growth rate.
This marks the fifth successive quarter in which the cloud market grew by between $10bn to $11bn from the prior year.
"The relative scale of their cloud operations now shows Microsoft being twice the size of Google, with Amazon being almost equal to the other two combined," said John Dinsdale, chief analyst and managing director at Synergy in an email to CRN.
CRN breaks down the top five cloud market share leaders on a global basis, alongside market share from the prior quarter as well as year over year market share numbers.
Global cloud market impacted by AI
Before jumping into AWS, Microsoft, Google, IBM and Alibaba's cloud market share, it's interesting to note that Synergy Research Group cited artificial intelligence, specifically generative AI (GenAI) as a reason why cloud computing growth continues to explode in 2023.
"As an already massive cloud market keeps on growing, the year-on-year growth rate almost inevitably declines," Dinsdale told CRN via email.
"But we are now starting to see a stabilisation of growth rates, as cloud provider investments in generative AI technology help to further boost enterprise spending on cloud services."
Dinsdale said it's still early days for GenAI but the technology "will help to keep cloud growth buoyant over the coming years."
Here are the top five cloud computing market share leaders as of Q3 2023.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
No. 5: IBM
Q3 2023 market share: 3 per cent
Q2 2023 market share: 3 per cent
Q3 2022 market share: 3 per cent
The long-time technology giant won 3 per cent share in the global cloud infrastructure services market in Q3 2023. IBM has consistently ranked No. 5 in the cloud rankings by capturing 3 per cent share over the past several quarters.
The New York-based company reported $14.8bn in total revenue during its third quarter 2023, representing 5 per cent growth year-over-year.
IBM doesn't break out its cloud sales figures, but instead includes them inside its software segment. IBM's software segment generated $6.3bn in revenue in Q3 2023, up 8 per cent year-over-year.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
No. 4: Alibaba (Alibaba Cloud)
Q3 2023 market share: 4 per cent
Q2 2023 market share: 4 per cent
Q3 2022 market share: 5 per cent
Alibaba Cloud ranked No. 4 for cloud market share in the third quarter 2023 by winning 4 per cent share. The Chinese company holds significant market share, approximately 33 per cent, in China and in some parts of Asia.
On a regional level, China's largest domestic cloud provider bests the likes of Tencent Cloud and Huawei in terms of cloud sales, according to Synergy data. However, the company isn't a large player in North America and doesn't compare to AWS, Microsoft and Google on a worldwide level.
Alibaba's worldwide market share has slightly dipped from around 5 per cent share throughout 2022, to around 4 per cent share this year.
Alibaba Group is set to report the financial earnings results for its third quarter 2023 on 16 November.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
No. 3: Google (Google Cloud)
Q3 2023 market share: 11 per cent
Q2 2023 market share: 11 per cent
Q3 2022 market share: 11 per cent
With the hiring of CEO Thomas Kurian in late 2018, Google Cloud has cemented itself over the years as being the world's third-largest cloud company. Google Cloud continues to be the fastest growing cloud company in the globe in terms of sales percentage, growing revenue by 22 per cent year over year in Q3 2023.
The California-based company won 11 per cent share of the global cloud infrastructure services market in third quarter 2023. Google Cloud's market share historically hovered around 9 per cent to 10 per cent market share over the past few years, but has witnessed a steady 11 per cent share victory since 2022.
In Q3 2023, Google Cloud generated $8.4bn in total revenue, with operating income of $266m.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
No. 2: Microsoft
Q3 2023 market share: 23 per cent
Q2 2023 market share: 22 per cent
Q3 2022 market share: 21 per cent
The world's largest software company won the silver medal in the cloud market by winning 23 per cent share in Q3 2023, as Microsoft continues to improve share. The Washington-based company increased share from 21 per cent in Q3 2022 to now 23 per cent global share.
Microsoft does not provide to the public its Azure sales figures. Instead, Microsoft combines Azure, server product and other cloud services revenue all under its Microsoft's Intelligent Cloud umbrella.
In Q3 calendar year 2023, Microsoft Intelligent Cloud group generated $24.3bn in sales, representing a 19 per cent year-over-year growth rate. The group reported a whopping $11.7bn in operating income, easily besting both AWS and Google Cloud.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
No. 1: Amazon (AWS)
Q3 2023 market share: 32 per cent
Q2 2023 market share: 32 per cent
Q3 2022 market share: 34 per cent
The world's long-time dominant cloud market share leader won 32 per cent share of the global cloud infrastructure services market in Q3 2023 to win the gold medal. AWS share has hovered between 32 per cent share and 34 per cent share over the past several years.
However, it is key to note that AWS sales growth rate has been lower than Microsoft and Google Cloud as of late. In Q3 2023, AWS generated $23.1bn in revenue, representing a 12 per cent growth rate year-over-year.
AWS generated operating income of $7bn in Q3 2023, compared to $5.4bn year-over-year. The cloud company is Amazon's most profitable business.
AWS, Microsoft top cloud market share list for Q3
Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group
Other notable market share companies
Salesforce Q3 2023 market share: 3 per cent
Oracle Q3 2023 market share: 2 per cent
There is little doubt that AWS, Microsoft and Google Cloud will continue to lead the market by leaps and bounds over the next several quarters and, potentially, years. Although there two companies - Oracle and Salesforce - who are fighting to be in line right behind the big three.
Salesforce has cracked into the top five market share leaders in cloud for the past several quarters. In Q3 2023, Salesforce won 3 per cent share of the market, similar to 3 per cent share in Q2 2023.
Oracle has consistently generated around 2 per cent share in the global cloud infrastructure services market for the past few quarters. In Q3 2023 as well as in Q2 2023, Oracle won 2 per cent share of the market.
Other companies who have a market share of 1 per cent include Baidu, China Telecom, China Unicom, Huawei, Fujitsu, NTT, Snowflake, SAP, Rackspace and VMware.