Market Share Report: Hyperscale Cloud 2018

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Executive Summary

Last year, we published the second version of our hyperscale cloud market share report. This latest update focuses in on seven, but we have swapped out two – Rackspace and EMC – and replaced
them with Oracle and Tencent. Overall growth was healthy, unsurprisingly, but was less top-heavy than in previous years. AWS continues to lead the market, but there is growing evidence that Azure and Google are closing the gap. Meanwhile, over in Asia, Alibaba is staking a dominant position, while the battle is on for number two.

In 2017, the hyperscale cloud infrastructure market crossed the $30b threshold and our projected CAGR for 2017-2022 is 48.8%. The latter is up from our previous five-year CAGR and reflects, to a large extent, the growth across the market. Azure and Google continue to be viewed as viable alternatives and are playing in the high-value areas – primarily artificial intelligence – where no platform, including AWS, has an unassailable lead. The playing eld is far more level here. Meanwhile, Oracle and IBM are pushing along steadily and also focusing in on AI.

The short history of the hyperscale cloud market has been about accumulating scale and grabbing real estate. This dynamic is still very much in play, especially when considering how much of the global market has yet to be fully penetrated. But in many ways, the maturing of the market and the increased viability of competitors, is making the scale game less crucial. The short list of providers that are in this game can all achieve scale. They would not be here otherwise. But the advantages and differentiation derived from that scale are declining. A new cloud battlefield has emerged and it centres on innovation. Increasingly, deals are won based on machine learning/artificial intelligence tools and cutting-edge technology.

This report provides growth rate projections and total revenue estimates for the hyperscale cloud providers on a five-year basis. Included are geographic splits and a total market share summation. The big picture take: there have been some signs that the market will grow at a more moderated pace in the coming years, but that surely doesn’t mean this market is slowing down, and there is still plenty of runway left considering how much of the world has yet to adopt cloud. But as this market matures, there will be shifting competitive dynamics. One of the big ones to look for, particularly in mature markets, is the growth of existing customers (those that have already adopted and put workloads on cloud). How much more can they put on cloud and how much more can they spend to add value and fully exploit cloud investments with things such as AI?

Table of Contents

Executive Summary

Hyperscale Cloud: Competitive Landscape

Methodology Discussion: Why These Seven?

Metric Takeaways

Hyperscale Cloud Market Size: Market Size Graphs

2017 Leaderboard

Revenue Table

Hyperscale Cloud by Region (2017)

Geographic Split


List of Countries by Region