A recent report from IT marketing research firm Synergy Research Group shows that Amazon, Google, and Microsoft don’t just dominate their respective core sectors, but around 76% of the enterprise cloud services market, as well.
The Microsoft Cloud, Amazon Web Services (AWS), and Google Cloud currently hold a 66% share of the total amount spent for cloud infrastructure services by users in the enterprise tier. That said, the three companies have the lion’s share of an industry whose worth is now close to $100 billion a year in the United States alone, and growing by 30% per annum across the globe – something that does not sit well with regulatory bodies in different parts of the world.
The Synergy report also estimated that, over the past year, total revenues from cloud infrastructure services hit a record $217 billion worldwide. These services include hosted private cloud services, as well as specialized features like Infrastructure as a Service (IaaS) and Platform as a Service (PaaS.) The report further added that the sale of cloud services, especially within the enterprise tier, is expected to remain strong over the next five years.
The Global Scenario
Outside of the US enterprise cloud sector, the Big Three cloud hyperscalers have cornered 66% of the global enterprise spending on cloud infrastructure services which, as of the third quarter of this year, came to more than $57 billion.
Right now, AWS ranks first among global enterprise cloud services providers as it holds a 34% share of the global market as of the end of September 2022. Meanwhile, Microsoft holds 21% of the global market, and Google stands a distant third with 11%.
Not Above Scrutiny
Recently, the United Kingdom’s Office of Communications (Ofcom) is set to hold investigations as to why these three companies appear to have a chokehold on the cloud solutions market.
In the event that the investigation reveals findings that go against competitive regulations, Ofcom could suggest that the UK government revise these regulations or take corrective action against Microsoft, Google, and Amazon.
In a statement issued to the media, Ofcom explained that it sought to delve into the current position of the three companies in the cloud services sector. The said investigation is part of a new program that seeks to ensure that the digital communications market is working well for all sectors concerned within the UK. However, it would not hesitate to act if it turns out that the three firms in question are violating terms related to industrial competition.