In Q4 2021, Global cloud infrastructure service revenues surpassed $52 billion for the first time, bringing the entire cloud industry total for the year to $178 billion.
Having established itself as an early leader in the market for cloud infrastructure, Amazon Web Services (AWS), the online retailer’s profitable known cloud platform, is still ahead of the pack.
According to estimates from Synergy Research Group, Amazon’s market share in the worldwide cloud infrastructure market amounted to 33 percent in the fourth quarter of 2021, still way ahead of the combined market share of its two largest competitors, Microsoft and Google.
“The battle for market share is getting more interesting,” said John Dinsdale, Chief Analyst at Synergy Research Group. “Amazon continues to lead by a wide margin, but Microsoft, Google and Alibaba all continue to grow more rapidly. The rising tide continues to lift all boats, but some are being lifted more swiftly than others.”
As the following chart shows, Amazon and Microsoft accounted for more than half of cloud infrastructure revenues in the final three months of 2021, with the eight largest providers controlling roughly 80 percent of the market.
The fact is that the market continues to grow at a rapid rate, and if analysts and prognosticators are correct, there is still a ton of room for growth in the cloud. We’re certainly seeing that quarter after quarter in recent years, as the largest players, in particular, reap the benefits of this growth with gaudy revenue numbers.
Even at the bottom of the market, there is still plenty of money to be made. While it might not meet the level of Microsoft, Amazon or Google, it can still add up to multibillion-dollar businesses. Chances are, in the coming years, we will continue to see continuing rapid growth. When we reach a point where we don’t, that’ll be the “man bites dog” news event.
What All means for your investment ?
Well Cloud will remain in demand taking an example as of now writing this article only 10% of worlds financial services are running on cloud. That said there is still big room to run.
So if you are picking up big cloud players for your investment at good price you will be fine for long term.