AI boom spurs growth in global cloud infrastructure sector
Amazon and Microsoft in the clear lead
Despite not reaching the peaks driven by Covid-19, the global cloud infrastructure sector has evolved into a formidable industry, spurred once again by the surge in artificial intelligence (AI) technology.
Amazon’s dominance through its Amazon Web Services (AWS) remains significant, although Microsoft’s Azure is increasingly challenging its lead, according to the latest data from Finbold.
As of Q1 2024, AWS commands 31% of the global market share, down from 33% in Q4 2021, while Azure has risen to 25% from 21% in the same period. Together, these two giants now control 56% of the market.
Other significant players in the sector include Google Cloud, which increased its market share to 11%, and Alibaba Cloud, the largest non-American provider, which saw its share decline to 4% from 6%. IBM Cloud’s share fell to 2%, while Oracle Cloud, Tencent Cloud, and Salesforce each retained 2% and 3%, respectively. Collectively, these providers hold 20% of the market share, a slight decrease from Q4 2021.
The growth of AWS and Azure is attributed to aggressive marketing strategies and robust scalability features that appeal to a broad customer base.
Microsoft’s partnership with OpenAI has notably enhanced Azure’s capabilities in AI-driven services, contributing to its recent market gains.
Despite concerns over systemic risks posed by the consolidation of cloud services, such as the recent global IT outage affecting Microsoft devices, the sector continues to expand rapidly.
Cloud services are increasingly integral to private and governmental digital initiatives, with AI applications driving further demand.
Looking forward, industry leaders like Sam Altman from OpenAI advocate for substantial investments in semiconductor and cloud capacities, highlighting AI as a pivotal driver for future growth in services provided by AWS, Azure, and others.
The cloud infrastructure sector’s resilience and growth underscore its crucial role in the digital economy, poised for continued expansion in the coming years.
Featured image: Cloud services are increasingly integral to private and governmental digital initiatives. Credit: Markus Spiske
