Cloud spending is increasingly concentrated around the five largest providers

Expenditure on the public cloud is increasingly concentrated around the five largest providers in this area. That’s what IDC’s records show. The consolidation of expenditure is even higher in Infrastructure and Platform-as-a-Service (IaaS and PaaS).

The five largest cloud providers accounted for 46.3 percent of all spending growth and 35 percent of overall spending in 2018. In terms of IaaS and PaaS, the five providers accounted for 63 percent of all spending, reports ZDNet. In the meantime, the cloud market is also growing steadily. In 2018, spending on global public cloud services grew 27.4 percent to $183 billion (approximately €165 billion). Although IaaS and PaaS see a lot of consolidation, SaaS is the most widely used in the cloud market. SaaS (Software-as-a-Service) accounts for 62.4 percent of all sales in the cloud market. This category converted USD 121 billion (EUR 109 billion) in 2018.

32 billion dollars

Earlier this week, Gartner announced that the IaaS market had grown rapidly in 2018. The global market for this product grew by 31.3 percent to 32.4 billion dollars (29 billion euros). The IaaS market was led in 2018 by Amazon, which recorded sales growth of 26.8 percent. Sales amounted to USD 15.5 billion (EUR 14 billion). Microsoft takes second place with a turnover of 5 billion U.S. dollars (4.53 billion euros), a growth of 60.9 percent.

Alibaba had the biggest growth in 2018, namely 92.6 percent with a turnover of 2.5 billion dollars (2.27 billion euros). Google and IBM had a turnover of 1.3 billion U.S. dollars (1.18 billion euros) and 577 million U.S. dollars (522 million euros).

Preference

Gartner also argues that the market share is likely to remain to a large extent with the major players. The consolidation of the cloud market favors the large and dominant providers, with smaller and niche providers losing share, said Sid Nag, research vice president at Gartner. Figures from IDC also show that in the SaaS area, specific large parties are also chosen. There, the market is concentrated around Salesforce, Oracle, Workday, SAP, Microsoft and Adobe.