The worldwide infrastructure as a service (IaaS) market grew 40.7 percent in 2020 to total $64.3 billion, up from $45.7 billion in 2019, according to Gartner.
Amazon held the number-one position in the IaaS market in 2020, followed by Microsoft, Alibaba, Google and Huawei. The caveat is that Microsoft uses a different definition for “cloud computing” revenues.
The “intelligent cloud” segment of Azure probably represents only about 35 percent of total Azure revenue. Another third of Azure revenue comes from productivity suite revenues. Also, 32 percent of Azure revenue comes from operating systems, productivity suites, Xbox, Surface and advertising.
So some might consider Azure revenue inflated by 33 percent to 66 percent. Gartner seems to adjust revenues for that reason.
In 2020, the top five IaaS providers accounted for 80 percent of the market.
Gartner defines Infrastructure as a service (IaaS) as “a standardized, highly automated offering in which computing resources owned by a service provider, complemented by storage and networking capabilities, are offered to customers on demand.”
Resources are scalable and elastic in near real time and metered by use. Self-service interfaces, including an API and a graphical user interface (GUI), are exposed directly to customers. If Gartner uses that definition, its shown estimates for IaaS are likely an “apples to apples” comparison.
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