In this article, we discuss 5 biggest cloud providers by market share in the world. If you want to see more biggest cloud providers by market share in the world, go directly to 12 Biggest Cloud Providers by Market Share in the World.
5. IBM Cloud
Worldwide Market Share in Q3 2022: 3%
IBM Cloud has a full stack cloud platform that offers more than 170 products and services including AI/machine learning, analytics, computing, and databases. In the third quarter, the company’s overall cloud sales increased 11% year over year to $5.2 billion and the tech giant had a worldwide market share of around 3% in the cloud infrastructure service market, ranking #5 on our list of 12 Biggest Cloud Providers by Market Share in the World.
4. Alibaba Cloud
Worldwide Market Share in Q3 2022: 5%
Alibaba Cloud is the cloud computing service offered by China’s e-commerce leader, Alibaba Group Holding. Although its growth has slowed in recent years, Alibaba Cloud was the leader with 37% market share in the China cloud infrastructure services market in 2021. For the 12 months ended March 31 2022, Alibaba Cloud also reported a full year profit of $164 million as the business achieved more scale. In Q3 2022, Alibaba Cloud had a worldwide market share of 5% in the cloud infrastructure service market.
3. Google Cloud
Worldwide Market Share in Q3 2022: 11%
Google Cloud, which is a division of Alphabet, is one of the big three cloud providers in the world with a worldwide market share of 11% in the third quarter of 2022 in the cloud infrastructure service market. Google Cloud provides infrastructure and platform services as well as other services for enterprise companies. Given that it trails second place leader Microsoft and first place Amazon Web Services by a substantial amount, Google Cloud has been investing in growth and as a result, its losses widened to $699 million in Q3 2022 versus $644 million Q3 2021. With scaling gains in the future, Google Cloud is nevertheless focused on the path to profitability once it achieves sufficient scale.
2. Microsoft Azure
Worldwide Market Share in Q3 2022: 21%
Microsoft Azure is the world’s second largest cloud infrastructure service provider with a global market share of 21%. According to Statista, Microsoft Azure has been a growth engine for Microsoft as the division generated 46% growth in Q2 fiscal 2022, 46% growth in Q3 fiscal 2022, 40% growth in fiscal Q4 2022, and 35% growth in fiscal Q1 fiscal 2023. In the future, there could be more growth given ChatGPT uses Microsoft Azure for its cloud computing. Microsoft is reportedly considering investing as much as $10 billion in OpenAI, which makes ChatGPT. If Microsoft makes the investment, OpenAI could potentially spend a substantial amount on Microsoft Azure.
1. Amazon Web Services
Worldwide Market Share in Q3 2022: 34%
Amazon Web Services or AWS is Amazon.com’s cloud computing business which leads in the world in terms of scale. In Q3 2022, Amazon Web Services had a 34% market share in the cloud infrastructure service market, which gives it substantial economies of scale that allow it to realize fairly attractive margins. In Q3 2022, AWS sales were $20.5 billion, accounting for 16% of Amazon.com’s total sales. Operating income for the division was $5.4 billion and operating margin was 26.3%. Although its Q3 results were lower than some estimates, many still believe AWS has a lot more growth ahead of it given the expected industry growth in the next decades.
Indeed Amazon Web Services is investing substantial sums for the future as it recently announced plans to invest $35 billion by 2040 to expand its data centers in Virginia that will create 1,000 jobs.
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