Amazon, Microsoft and Google dominate
As seen in earlier periods, Amazon has held onto its market lead with a 29% share. However, Microsoft and Google continue to achieve higher growth rates of 20% and 13% respectively.
Tier two players, including CoreWeave, OpenAI, Oracle, Databricks, and Huawei, continue to make gains.
CoreWeave has become a standout in this group. Thanks to its AI and GPU services, CoreWeave is now achieving well over a billion dollars in quarterly cloud revenue and is close to joining the top ten ranking of cloud providers.
IaaS and PaaS take charge
Now that the majority of the large cloud providers have released their third quarter results, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $106.9 billion, with trailing twelve-month revenues reaching $390 billion.
The research firm noted that Public IaaS and PaaS services account for the bulk of the market, and those grew by 30% in the third quarter.
In the public cloud, the major cloud providers remain the dominant players, with the top three making up 67% of the market.
From a geographic standpoint, the cloud market continues to enjoy strong growth across all regions. The major countries with the strongest growth included India, Australia, Indonesia, Ireland, Mexico and South Africa, all growing at rates above the worldwide average.
Despite the gains of other countries, the US remains by far the largest cloud market, with its scale far surpassing the whole Asia Pacific region. During the third quarter, the US market grew by 27%. In Europe, the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Spain and Italy.
“Q3 market numbers were simply very impressive with a record-breaking sequential increase and yet another jump in growth rates,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “The leading cloud providers all posted strong numbers, while the Chinese market is improving and neocloud companies are now making a real impact on the market.”
He added that “GenAI is driving a lot of the positive metrics, and as one example of that, revenues from GPUaaS are now growing by over 200% per year,” adding “up to a surging cloud market which bodes well for the coming years.”
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