While AWS leads the cloud market share, survey result shows that Azure and Google cloud have better prospects

The Cloud Computing market is estimated to reach $623.3 billion by 2023. While companies have increased their paid subscription usage, many companies are using multiple cloud vendors. As per the RightScale 2019 State of the Cloud Report from Flexera, 94% of companies are using cloud out of which 84% are on multiple clouds.

Being on multiple clouds not just reduces their dependency on a single vendor, but also allows them to have operational and economic benefits. With mostly hybrid subscription packs, it is observed that companies spend between $1.2 million to $2.5 million yearly on cloud storage.

For Cloud providers, the current market share does not remain the only influencing factor for revenue growth. The way these clouds are adopted is also what will define their future prospects. Currently, AWS leads the market, but Azure is also growing very fast. Some interesting statistics for cloud brands globally:

  • Amazon Web Services (AWS): AWS leads the public cloud adoption market with a share of 32% as per Canalys data. Since it was the first large scale provider of Cloud services and is preferred by advanced and matured users. Among SMBs, AWS adoption has decreased from 60 to 53 % in last year. Though AWS continues to lead in public cloud adoption, the adoption of other public cloud brands is growing faster.
  • Azure: Azure is estimated to have a share of 16% by Q4 2018. The adoption rate of Azure is seen coming close to that of AWS, having increased from 45 to 52% over the last year. Also, for SMBs, Azure adoption rate grew from 32 to 41 percent during this period. Among earlier-stage cloud users, 41% choose Azure, putting it second only to AWS with 52% adoption in the last one year.
  • Google: With a market share of less than 10%, Google stands in the third position in terms of adoption. As per the RightScale data, the companies experimenting with or planning to use the cloud, have expressed the highest interest for Google with 36% (followed by AWS with 29 %). This indicates a much faster growth potential for Google to accelerate adoption. Google sees the higher first-time adoption among the brands, and for the same period this year, as high 24%.
  • VMware Cloud on AWS: In its second year since the launch, VMware has moved up to fourth position this year, as the adoption rate has increased to 12% from 8% percent in 2018.

Other than these, the growth rate of Oracle cloud too went by 60 %, – from 10% in 2018 to 16 % in 2019. IBM Cloud saw adoption rate from 15 to 18 percent (20 percent growth rate), and Alibaba from 2 to 4 percent (100 percent growth rate).

With this shift in the adoption rates and Azure competing head to head with AWS, there are high possibilities for major innovations that could influence the cloud market deeply in the coming years.