The Cloud Duopoly?

by | Aug 30, 2016 | Blog

Every year Gartner releases its analysis of the Cloud Infrastructure as a Service (IaaS) market.

The report compares the largest IaaS provides in the world and scores them on their “completeness of vision” and their “ability to execute” this vision.

Along with this report Gartner also produce their wonderfully named “Magic Quadrant”.

The Magic Quadrant aims to condense all of Gartner’s detailed analysis into one easily digestible graphic for the millennial generation.

To those of you familiar with the Cloud IaaS space, it will come as no surprise to learn that AWS and Microsoft (in that order) are leading the field by a big margin.

But what is interesting is how the market is getting less competitive away from these two dominant companies.

Here is the Magic Quadrant from 2014, where you can see AWS and Microsoft as the clear leaders of the fifteen companies listed. However, five companies were bubbling away in the “visionaries” quadrant:

gartner2014
By 2015 this had dropped to four companies, with Google the only player making any progress:

gartner2015

However the 2016 edition only has ten companies listed and Google is the only company anywhere close to AWS and Microsoft. The rest are dropping back into the “niche players” quadrant:

gartner2016

So what does this mean for these “niche player” IaaS providers?

Well it means that AWS and Microsoft are absolutely dominating the IaaS marketplace and have taken a strangle hold on the market. Google is able to hang on to their coattails due to its infinitely deep pockets.

As for the rest of the competition, Gartner says this:

The market for cloud IaaS has consolidated significantly around two leading service providers. The future of other service providers is increasingly uncertain and customers must carefully manage provider-related risks.

That’s not to say other cloud providers are going to go out of business, but it is very clear who the two leaders are going to be for the foreseeable future.

And that is why my company, databasable, focuses solely on AWS.

You can read the full Gartner Cloud IaaS report here.

To streamline your migration to AWS, just email me at marcw@databasable.com.

databasable provides expert AWS Solutions Architect solutions: http://www.databasable.com