Amazon Web Services, the big bully of the global cloud market, is losing its grip as AWS’ cloud market share fell two points, while Microsoft’s cloud share rose by nearly two points year-on-year in the last quarter of 2023.
IT market researchers Synergy Research Group said businesses splashed out $73.7 billion on cloud services in the last quarter of 2023, a 20 per cent jump from $61.6 billion in the same quarter of 2022,
Synergy VP John Dinsdale said it was a cracking quarter for the cloud market. As the market grows like mad, Amazon, Vole, and Google still rake in most of the cash.
Their combined share was 67 per cent in Q4. Vole had an excellent reason to be chuffed, as its market share increased by almost two points to reach a new peak.
Dinsdale said that Google’s share “went up while Amazon slipped down.”
“Amazon is still miles ahead of Microsoft, but the gap is shrinking,” he said.
“The last quarter of the year usually gets a boost with quarterly spending increasing more than in the first three quarters, but this quarter broke the record. Q4 spending shot up by $5.6bn from the previous quarter, the biggest jump the cloud market has ever seen,” said Dinsdale.
In 2023, worldwide business spending on cloud services hit about $270 billion, a 19 per cent rise from 2022.
“While economic, currency and political troubles have eased a bit, it is clear that AI tech and services have made a big difference, helping to push up cloud spending,” Dinsdale said.
“AI is one of the main reasons for the strong performance, as cloud providers and businesses love the tech.”
