Sunday, February 7, 2021

Hyperscale Cloud Computing Market is Not Yet Stable, But Getting Close

The hyperscale cloud computing business now is a market share battle between just four firms globally, according to Wikibon: Amazon Web Services, Microsoft Azure, Alibaba and Google Cloud Platform. 


source: Wikibon 


Significantly, the market share structure is approaching a distribution that historically suggests a stable. The stable but competitive market structure has a 4:2:1 pattern. The leader has twice the share of the number-two provider, which in turn has twice the share of number three. 


source: Wikibon 


That is not exactly what we see for hyperscale cloud computing suppliers in the infrastructure and platform segments of the market, but is getting close to the predicted pattern.


AWS, at 53 percent share, has not double the share of Azure, but is within the general pattern. Azure has more than twice the share of Alibaba. 


That suggests the number-two provider will eventually lose some share, while either the present number-three or number-four providers will gain share. 


The share amounts and positions change if hosted private cloud services are added.

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