Amazon AWS Holds onto Lead in Cloud Infrastructure

Amazon’s AWS holds the lead on cloud infrastructure, as the market as a whole grew by 42%. That’s according to analyst firm Canalys, which revealed the worldwide cloud infrastructure services market grew by 42% year-on-year in the first quarter of 2017, to a total size of $11 billion.

While Amazon held onto the lead with 31% of the market by value, its growth of 43% was slower than Microsoft and Google, up 93% and 74% respectively.

“Competition for enterprise customers is intensifying among leading cloud service providers, which are investing heavily to secure key national and global accounts,” said Canalys analyst Daniel Liu. “Timing is crucial, as many large accounts are assessing, formulating and executing strategies to move existing workloads and infrastructure to the cloud, and develop new types of workloads as part of digital transformation initiatives.”

While Google has posted solid growth this year, it needs to do more to convince enterprise users, Canalys analyst Jordan De Leon noted. “It has made progress toward meeting the technology and feature requirements of large enterprise customers,” he noted. “But to rival the others, it needs to demonstrate its enterprise readiness and enhance its credibility. To achieve this, it needs to sustain investment in both technology and go-to-market, and continue to highlight key customer wins.”

Because of the tough competition, cloud rivals are looking to the channel to help grab more market share – a strategy that’s worked for Amazon, De Leon added, noting Microsoft has had success with converting its enterprise client base to Azure.

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