NetworkTigers examines the battle for U.S. cloud infrastructure dominance as AWS faces growing competition from Microsoft, Google, Oracle, and others seeking market share through AI, security, and streamlined services.
Look out, AWS, Microsoft, Google, Oracle and other cloud infrastructure services are coming for the crown. In the battle for cloud domination, factors like security, ease of access, and AI integration all command customer attention and loyalty. But understanding what allows one cloud infrastructure service to break ahead from the pack is not as clear-cut as you might think. The battle for cloud domination is heating up, and consumers are studying the options closely.
Looking to the U.S. market and cloud services
One of the most important factors to understand in the battle for cloud domination is that it largely revolves around a US-based market. While world internet access is growing, bringing 97 million more users online in the last year alone, the cloud services market remains primarily US-based. And, it is expanding exponentially, with continued strong growth predicted in the demand for Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and hosted private cloud services. The U.S. cloud market grew by 20% during Q1 of 2024, surpassing the entire demand for cloud services in the Asia-Pacific (APAC) region, despite its own high growth rate of 25%.
The cloud-based market is one that companies fight to conquer for good reason. It hit $283 billion in spending over the past 12 months, and the expansion of generative AI services and their integration into the cloud plays no small part in that growth. Analysts predict that while growth rates may not match the pre-2022 explosion, the cloud market is still expected to double in size over the next four years.
Who are the major players in the battle for cloud domination?
Both Oracle and SAP used to hold commanding market shares in the world of cloud services. These mega-vendors maintained their jurisdiction by setting end-of-support deadlines for users, forcing them to migrate to the cloud or go unsupported. These kinds of ruthless tactics may have once been effective, but now have largely come to an end. Today’s cloud clientele is more tech-savvy and IoT-fluent than ever before. This has allowed other options like Amazon Web Services (AWS), Google Cloud, Microsoft Cloud, and more to step in and fill the void of working options. By providing additional consumer choice, these companies have managed to eat away at the traditional cloud market share.
Today, AWS holds the largest revenue share for the cloud services market at 31%. However, the Microsoft Azure platform has seen some of the steadiest growth, rising to 25% of the market. Amazon has maintained its lead even as Microsoft and Google have seen more substantial year-on-year growth numbers, according to a report from Synergy Research Group. Google Cloud holds an 11% market share worldwide after posting its Q1 growth rates, just behind Microsoft and AWS. These three companies are currently the giants in the cloud services market, controlling vast swaths of the playing field in a way that other companies cannot match. However, among emerging tier two providers, some to watch include Huawei, Snowflake, and MongoDB.
Some of the most powerful players in the battle for cloud domination and their strengths currently include:
- AWS: Amazon Web Services is the king of the cloud services market for a reason. The company’s “lift and shift” capacity has allowed customers to convert to AWS more easily than other options.
- Google Cloud: Google’s brand recognition and widespread compatibility make it a popular choice, allowing easy integrations with YouTube, Gmail and more.
- Microsoft Azure: Don’t count Microsoft out in the battle for cloud services domination. Its Azure platform boasts increased scalability and security for businesses and is growing steadily.
- IBM: IBM’s cloud platform is known for its security in the Public Cloud field.
- Salesforce: Salesforce has leveraged its reputation for largely positive customer relationships into a case for increased productivity and customization potential as a cloud services provider.
- Apple: Apple’s cloud services (iCloud) are well-known for personal use, but have yet to break into the larger corporate cloud market share as a service provider in the way that Microsoft and Amazon have managed to dominate.
Tactics used in the battle for cloud domination
What makes users consider a switch from one cloud platform to another? For one, migrating platforms often comes with the case for increased security. As enormous amounts of data are shifted skywards, cloud security is a major concern for consumers and an important focus for companies attempting to earn their trust. Because of their ease of use, cloud services platforms are often deployed without direct IT admin oversight. This can leave them more open to data breaches due to reused passwords and human error. Cloud vendors must make their services visible to third-party security and enforcement, as well as watch for credential stuffing and other hacking efforts that take advantage of their widespread accessibility.
Other tactics involved in the battle for cloud domination include:
- Waiving data egress fees: Platforms like AWS and Google Cloud have chosen to waive their fees to respond to European data regulation under the EU Data Act, and make themselves more appealing for consumers looking for more freedom of choice.
- Consolidating data: Many internet users are unsure where and how their data is stored, as they spread their information across multiple platforms. Cloud services can consolidate data and allow users more visibility and simplified support options. For this reason, one of the most common methods for winning over new customers in the battle for cloud services is streamlining migration paths and allowing consumers to consolidate data in one larger platform.
- Industry-specific options: For some cloud service providers, larger is not always better. Many smaller IaaS or PaaS providers attempt to specialize in one area, like healthcare or finance, to woo clients away from giants like AWS or Google. By claiming specialized services, tier two providers can win over larger industry-specific clients.
As the battle for cloud domination heats up, consumers have more options than ever before – and are expected to continue using them.
About NetworkTigers
NetworkTigers is the leader in the secondary market for Grade A, seller-refurbished networking equipment. Founded in January 1996 as Andover Consulting Group, which built and re-architected data centers for Fortune 500 firms, NetworkTigers provides consulting and network equipment to global governmental agencies, Fortune 2000, and healthcare companies. www.networktigers.com.
