Amazon, Microsoft and Google own more than 76 percent of the enterprise cloud services market in the United States and that anti-competitive state is likely to deteriorate,
IT market research firm Synergy Research Group said American enterprises’ annual spend on cloud infrastructure services was now approaching a significant milestone.
Synergy Research Group chief analyst John Dinsdale said that US spending on cloud services was approaching a $100 billion annual run rate and continues to grow by 30 percent per year, which was unusual for such a large IT market.
Over the past 14 quarters, the US year-over-year growth rate for cloud services has been between 27 percent to 34 percent and the growth is being led by Microsoft, Amazon’s cloud business—Amazon Web Services (AWS)—and Google’s cloud arm Google Cloud, he said.
These three cloud hyperscalers combined for 66 percent share of the global enterprise spending on cloud infrastructure services, which exceeded $57 billion during the third quarter of 2022.
Given that the US telcom’s market has been locked up for decades due to its telecoms cartel their are fears that the big three AWS, Google Cloud and Microsoft might carve up the cloud in a similar way.
In September, the UK’s communications regulator unveiled it will investigate AWS, Microsoft and Google Cloud’s stronghold on the market.
In Blighty the three cloud leaders combined for more than 80 percent of total revenues in the UK public cloud infrastructure services market.
“Ofcom is to examine the position of Amazon, Microsoft and Google in cloud services, as part of a new programme of work to ensure that digital communications markets are working well for people and businesses in the UK”, Ofcom said in a statement. “If competition concerns are identified it could lead to further action.”
Synergy Research Group said that AWS was the worldwide enterprise cloud services market leader, owning 34 percent share of the global market as of third quarter 2022.
Microsoft won 21 percent share of the global cloud services market in the third quarter, followed by Google Cloud at 11 percent share.
