Top Cloud Infrastructure Vendors Set To Take Lion’s Share Of Market

Gartner has warned enterprises to be wary of the growing influence of the biggest cloud infrastructure vendors, as a growing market is set to hand them an ever more dominant proportion of sales.

Cloud-based infrastructure, or Infrastructure as a Service (IaaS), is the fastest growing part of the cloud market, set to grow 35.9 percent this year to $40.8 billion (£28.7bn) and to $83.5bn by 2021, Garter forecast.

It expects the broader cloud market to be worth more than $302bn by the same date.

The largest 10 providers, including Amazon Web Services (AWS), Microsoft and Google, accounted for half of all infrastructure sales in 2016, a figure set to rise to 70 percent by 2021.

Portability

That could pose problems for their clients, for whom a competitive market is preferable, Gartner said.

“The increasing dominance of the hyperscale IaaS providers creates enormous opportunities and challenges for users and other market participants,” said Gartner research director Sid Nag. “While it enables efficiencies and cost benefits, organisations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market.”

As a result enterprises are likely to increasingly seek to run workloads across infrastructure from multiple providers, something Nag said could influence providers’ policies.

“Organisations will increasingly demand a simpler way to move workloads, applications and data across cloud providers’ IaaS offerings without penalties,” he said.

Cloud apps on the rise

Cloud-based software remains the largest single market segment, with $73.6bn in forecast revenues this year, up 22.2 percent on 2017.

Gartner said cloud software’s growing popularity could see it account for 45 percent of total spending on application software by the end of the forecast period, with estimated revenues at that time of $117.1bn.

Nag added that cloud software users are increasingly looking for more “purpose-built” offerings designed with specific ends in mind.

Databases are the fastest growing area of cloud-based platforms, with estimated sales of $10bn by 2021, with Oracle and Microsoft the top vendors, increasingly challenged by AWS. Cloud platform sales are estimated at $15bn this year and $27.3bn by 2021.

How well do you know the cloud? Try our quiz!

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Wisk Plans Autonomous Air Taxi Flights By Decade’s End

Boeing-owned start-up Wisk plans autonomous eVTOL flights by end of decade as companies crowd into…

21 hours ago

US Cracks Down On Tech Shipments To Russia

Shipments of high-end chips and other electronics to Russia via China and Hong Kong said…

21 hours ago

Double-Digit Growth For Google Expected Amidst AI Push

Google expected to see double-digit revenue and profit growth for second quarter amidst AI cloud…

22 hours ago

Xiaomi Entered EV Market ‘Due To US Sanctions’

Xiaomi chief executive says he decided to begin making electric vehicles after company was placed…

22 hours ago

Nvidia Said To Develop ‘Blackwell’ AI Chip For China

Nvidia said to be developing version of next-gen 'Blackwell' AI chip for China market as…

23 hours ago

NHS Delays Continue After Windows Outage

Patients told to expect delays into this week as disruption to EMIS booking system leads…

2 days ago