In this article, we will look at the 15 biggest cloud providers by market share in 2024. We have also discussed the latest revenue and growth of top cloud providers.
The COVID-19 pandemic has fueled a rapid shift towards cloud adoption, with projections indicating that global spending on cloud services and related components will exceed $1.0 trillion in 2024, maintaining a CAGR of 15.7%.
Moreover, the global cloud services market is witnessing major growth, with a projected value of $2.19 trillion by 2032, with a CAGR of 17.10% from 2023. In 2022, North America held a dominant market share of 42%, driven by a strong emphasis on digitalization, particularly in sectors like IoT, big data analytics, and artificial intelligence. Large enterprises accounted for 52% of the market share in 2022, reflecting their investment in cloud solutions for enhanced agility and efficiency.
The market is segmented by deployment, with private clouds leading in 2022 with a share of over 47%, offering organizations greater control and security. However, hybrid clouds are expected to witness rapid growth, driven by SMEs adopting cloud-based solutions for productivity enhancement and cost reduction. Software as a Service (SaaS) dominated the market in 2022 due to its ease of deployment and cost-effectiveness, while Infrastructure as a Service (IaaS) is projected to grow rapidly, fueled by the demand for hybrid cloud platforms and robust data storage solutions.
In terms of region, Asia Pacific is anticipated to experience exponential growth, fueled by increasing demand from sectors such as manufacturing and healthcare. Additionally, key market developments, such as collaborations between companies like Walgreens Boots Alliance Inc (NASDAQ:WBA) and Microsoft Corp (NASDAQ:MSFT), underscore the growing importance of cloud technology in revolutionizing different industries.
Moreover, AI-as-a-Service is democratizing AI through cloud platforms, enabling businesses to harness transformative technologies without heavy investment. Leveraging vast compute power and data, AI models like ChatGPT are trained, offering economic and social benefits. Predicted to rise from 76% to 85%, multi-cloud strategies provide cost and flexibility advantages but pose challenges in data governance and integration.
Hybrid cloud solutions combining on-premises infrastructure with cloud services are also gaining popularity, allowing organizations to balance security and flexibility. In 2024, real-time cloud infrastructure is becoming equally vital, as organizations are prioritizing up-to-the-minute insights over stale data. Streamed data consumption is also on the rise, emphasizing the need for instant access storage like Flash and solid-state devices. This shift accommodates trends such as cloud gaming and streamed entertainment from platforms like Netflix Inc (NASDAQ:NFLX) and Spotify Technology SA (NYSE:SPOT), indicating a growing demand for real-time data handling capabilities.
It is worth mentioning that Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (CGP) are the top three cloud providers in the world in 2024.
On the financial end, in the fourth quarter of 2024, Amazon.com, Inc (NASDAQ:AMZN)’s cloud division, AWS, witnessed a revenue growth of 13% year over year, hitting $24.20 billion, meeting analysts’ expectations precisely. This growth was attributed to the increasing adoption of cloud services for artificial intelligence, with AWS introducing products like the Q chatbot and the Trainium2 chip. Despite this growth, AWS faced stiff competition from Microsoft Corp (NASDAQ:MSFT)’s Azure and Alphabet Inc (NASDAQ:GOOG)’s Google Cloud, which saw revenue increases of 30% and 26%, respectively. However, AWS maintained its position as a major contributor to Amazon.com, Inc (NASDAQ:AMZN)’s overall revenue, representing 14% of the company’s total earnings.
Operating income for AWS in the fourth quarter stood at $7.17 billion, surpassing StreetAccount’s consensus by approximately 38%. This stable performance further solidified AWS’s continued profitability and dominance in the cloud services market. Additionally, Amazon.com, Inc (NASDAQ:AMZN)’s decision to extend the useful life of its servers to six years is projected to bolster first-quarter operating income by $900 million.
On the other hand, Microsoft Corp (NASDAQ:MSFT)’s Azure cloud platform is rapidly gaining ground on Amazon Web Services (AWS), with analysts estimating Azure to now be about three-quarters the size of its top competitor, compared to being only half its size five years ago. Much of Microsoft Corp (NASDAQ:MSFT)’s recent success can be to its strategic focus on artificial intelligence (AI). Revenue growth in Microsoft Corp (NASDAQ:MSFT)’s Azure and cloud services division is being largely boosted by AI, with 6 points of revenue growth attributed to AI in the latest period. This growth outpaces AWS, with Microsoft Corp (NASDAQ:MSFT) Azure’s revenue increasing by 30% compared to AWS’s 13% year-over-year growth.
It is interesting to note that Microsoft Corp (NASDAQ:MSFT)’s investment in AI isn’t just limited to software; they’re also integrating AI capabilities into their cloud infrastructure, including the use of graphics processing units (GPUs) for running AI models. Their collaboration with OpenAI, including technologies like GPT-4, has attracted a considerable number of Azure AI customers.
To read more about cloud companies, see Top 20 Cloud Computing Companies in USA.
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Methodology
To list the biggest cloud providers by market share in 2024, we utilized the market share value of big cloud companies based on their Q4 2023 revenue from their respective cloud segments. We obtained data of Q4 2023 market share data from CRN.com.
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15. Fujitsu, Ltd
Market Share Q4 2023: <1%
Fujitsu’s Global Cloud Platform offers Infrastructure-as-a-Service (IaaS) from data centers in Japan, Australia, Singapore, the US, the UK, and Germany. Initially known as OViSS in Japan, it evolved into Fujitsu Global Cloud Platform/S5, later rebranded as IaaS Trusted Public S5. Collaborating with Microsoft Corp (NASDAQ:MSFT), Fujitsu introduced FUJITSU Cloud PaaS A5 for Windows Azure, featuring PaaS capabilities like Microsoft .NET and Java. Additionally, the acquisition of RunMyProcess in 2013 enhanced its Cloud-based integration Platform-as-a-Service (PaaS).
14. Baidu, Inc
Market Share Q4 2023: <1%
Baidu AI Cloud, the cloud computing service offered by Chinese search giant Baidu, encompasses a range of services including compute and storage, network and CDN, database, big data, and security solutions. As of 2021, it held approximately 9% of the market share in China’s cloud infrastructure services expenditure, placing it fourth behind Alibaba Cloud, Huawei Cloud, and Tencent Cloud. Given the considerable size of China’s cloud market, Baidu AI Cloud is one of the key players in the global IaaS cloud industry.
13. China Telecom Corp, Ltd
Market Share Q4 2023: <1%
China Telecom’s eSurfing Cloud recently expanded globally, starting with cloud services in Hong Kong. The launch event shed light upon the eSurfing Cloud’s core strengths in cloud-network integration and R&D. Government Chief Information Officer Tony Wong discussed Hong Kong’s digital initiatives, emphasizing cloud solutions for city management. China Telecom’s CEO announced plans for a large data center in Hong Kong, aiming to bolster the city’s smart infrastructure. With support from partners like Intel, eSurfing Cloud aims to enhance market competitiveness and innovation globally, paving the way for digital transformation in various industries.
12. China United Network Communications Group, Co
Market Share Q4 2023: <1%
Unicom Cloud delivers secure, integrated cloud solutions for enterprises and developers. With extensive industry certifications, it offers Elastic Compute Service (ECS) for reliable performance. Cloud-network convergence facilitates seamless digital transformation, while digital intelligent integration ensures all-round security. Tailored cloud solutions and multi-cloud synergy enhance collaboration and efficiency. Industry Cloud, powered by virtualization and cloud-native technology, excels in PaaS capabilities like asset management and security. Its solutions span data storage, smart video, and hybrid cloud, supporting diverse industries with eco-friendly practices. It is one of the largest cloud providers in China.
11. SAP SE (NYSE:SAP)
Market Share Q4 2023: <1%
In Q3 2023, SAP SE (NYSE:SAP) reported $3.82 billion in revenue, with S/4HANA Cloud ERP hitting $1 billion for the first time. Facing competition from Oracle and Workday, SAP SE (NYSE:SAP) aims to transition its 25,000 on-premises customers to the cloud. Notably, cloud revenue increased by 23% to $3.82 billion, with a backlog of $13.5 billion. S/4HANA Cloud revenue increased by 77% to $1.05 billion, forming over a quarter of SAP SE (NYSE:SAP)’s cloud revenue, while the Platform-as-a-Service revenue rose by 46%. It is one of the largest cloud providers by market share in the US in 2024.
10. VMware LLC
Market Share Q4 2023: <1%
VMware, a leading provider of cloud services, offers VMware Cloud Infrastructure Services. Initially under Dell Technologies after Dell’s acquisition of EMC Corp in 2015, VMware gained independence in November 2021. This separation allowed VMware greater autonomy to invest in and expand its cloud computing offerings. By breaking away from Dell Technologies, VMware aimed to accelerate its growth trajectory and enhance its strategic flexibility in meeting the evolving needs of enterprises seeking digital innovation while maintaining control over their operations. It is also one of the 12 Biggest Cloud Providers by Market Share in the World.
9. Huawei Technologies Co, Ltd
Market Share Q4 2023: <1%
Huawei Cloud, the cloud infrastructure computing service offered by the Chinese technology giant Huawei, holds major market presence in China. According to China Internet Watch, Huawei Cloud commanded an 18% share of the China cloud infrastructure service spend in 2021, surpassing Tencent Cloud’s 16% and Baidu AI Cloud’s 9%. However, as Huawei is a private company, its current market share is challenging to determine definitively. Nevertheless, it undoubtedly remains among the top players in the industry. It is one of the top 10 biggest cloud providers by market share in 2024.
8. Tencent Holdings Ltd
Market Share Q4 2023: 2%
Tencent Cloud, offered by Chinese tech conglomerate Tencent, is an important cloud computing service utilized by software developers across different industries, including Tencent’s flagship WeChat platform. With a 16% market share in China’s cloud infrastructure services sector in 2021, Tencent Cloud demonstrates major domestic influence. Globally, it secured approximately 2% of the cloud infrastructure service market in Q3 2022, confirming a growing presence on the international stage. It is one of the largest cloud providers by market share in the world in 2024.
7. Oracle Corp (NYSE:ORCL)
Market Share Q4 2023: 2%
Oracle Cloud, by Oracle Corp (NYSE:ORCL), offers a comprehensive suite of cloud computing services including servers, storage, network, applications, and more, accessible via a global network of data centers. Services are provisioned on demand over the Internet, encompassing Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), and Data as a Service (DaaS). It supports various open standards, open-source applications, and programming languages, enabling the building, deployment, integration, and extension of applications in the cloud. Oracle Cloud caters to diverse needs, incorporating Oracle-specific, Open Source, and third-party software and systems. It is estimated that Oracle cloud market share is around 2% in 2024.
6. International Business Machines, Corp (NYSE:IBM)
Market Share Q4 2023: 2%
As of 2021, International Business Machines Corp (NYSE:IBM) Cloud offered over 170 services like compute, storage, networking, and analytics for businesses. It encompasses a range of solutions including database management, machine learning, and developer tools. IBM Cloud caters to diverse needs in cloud computing, providing comprehensive resources for businesses’ digital operations. It is estimated that IBM cloud market share is around 2% in 2024.
5. Salesforce Inc
Market Share Q4 2023: 3%
Salesforce (CRM) raised its annual profit forecast after beating third-quarter Wall Street targets. The increase is attributed to strong demand for its cloud and business products with the ongoing economic uncertainty and drove shares up 7%. Salesforce anticipates fourth-quarter revenue and profit to exceed expectations, indicating a potential uptick in tech spending amid cooling inflation. The company’s recent hiring of 3,000 staff after margin-focused job cuts earlier, reflect a focus on profitability. Additionally, the launch of its generative AI tool, Einstein Copilot, aims to enhance productivity across its suite of apps. Salesforce’s optimistic outlook signals a stable trajectory.
4. Alibaba Group Holding Ltd
Market Share Q4 2023: 4%
Alibaba Cloud is a cloud computing arm of Alibaba Group that caters to online businesses and Alibaba’s e-commerce ecosystem. Based in Singapore for international operations, it offers pay-as-you-go cloud services like elastic compute, storage, databases, big-data processing, DDoS protection, and CDN. Dominating China’s cloud market and ranking atop Asia Pacific by Gartner, it boasts 24 regions and 74 availability zones globally. Recognized in Gartner’s Magic Quadrant for cloud infrastructure as a service, Alibaba Cloud has secured a spot in the Visionaries’ quadrant since June 2017 which confirms its standing in the competitive cloud computing landscape.
3. Alphabet Inc
Market Share Q4 2023: 11%
Google Cloud, a subsidiary of Alphabet, stands among the top three cloud providers globally, commanding an 11% share of the cloud infrastructure service market in the third quarter of 2022. Offering infrastructure, platform, and various enterprise services, Google Cloud competes with industry giants like Microsoft and Amazon Web Services.
In Q4 2023, Google Cloud raked in $9.2 billion, with a 25.66% YoY increase and an $864 million operating income compared to a $186 million loss the previous year. Alphabet’s overall net income for 2023 hit $73.8 billion, partly due to extending server and networking equipment lifespan, cutting Q4 depreciation costs by $983 million and boosting net income by $765 million. Despite a $11 billion Q4 capital expenditure driven by AI investment, Google’s shares dipped 6% post-earnings due to lower-than-expected ad revenue.
2. Microsoft Corp
Market Share Q4 2023: 24%
Microsoft reported 33% increase in net profit for its fiscal 2024 second quarter, buoyed by robust Azure cloud business and exceeding analysts’ revenue expectations. Net profit increased to $21.9 billion, driven by strong productivity and cloud sectors. Revenue for the October-December period increased 18%, surpassing $62 billion. Despite this, Microsoft’s stock experienced a slight dip in after-hours trading. The company’s emphasis on AI integration across its tech stack, particularly in Azure, continues to attract growth, with intelligent cloud division revenue climbing by 20%.
1. Amazon.com, Inc
Market Share Q4 2023: 31%
In the fourth quarter of 2023, Amazon Web Services (AWS) exhibited stable financial performance, recording a revenue of $24.2 billion, with a 13% year-on-year growth. This revenue increase also confirmed AWS’s dominant position in the public cloud platform market, with a 31% share. The company’s strategic decision to extend the lifespan of server hardware from five to six years is also expected to yield operational benefits, as CFO Brian Olsavsky forecasts a $900 million boost to operating income in the first quarter of the fiscal year.
Despite its competitors experiencing a decline in stock value post-quarterly results, Amazon saw its shares increase, reflecting investor confidence in AWS’s performance. AWS’s relentless focus on innovation, particularly in areas like generative AI and large language models, positions the company for sustained growth. As the cloud services market continues to expand, AWS remains at the forefront. It is the biggest cloud provider by market share in 2024.
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Disclosure: None. 15 Biggest Cloud Providers by Market Share in 2024 is originally published on Insider Monkey.
