AWS Marketplace Share: Revenue, Growth & Contest (2022)

Amazon Spider web Services (AWS) was founded back in 2006 and was the first company to offer mod cloud infrastructure every bit a service. Since its launch, AWS has become a staple for both hosting and information storage in particular.

What is AWS?

Amazon Spider web Services (AWS) is a cloud service provider that uses Amazon'southward own infrastructure and experience. Rather than a partitioning of the company, like Microsoft'due south Azure, AWS is a subsidiary visitor of Amazon.

AWS offers a wide range of cloud services, from bones hosting and deployment to analytics, blockchain, machine learning, and more.

AWS offers a variety of cloud computing products.
AWS offers a variety of cloud calculating products.

All the storage and computing resources come from a distributed network of information centers spread beyond the earth, to facilitate less latency and a better feel for your stop-users.

AWS offers a hosting and storage service chosen Amazon Simple Storage Service, more normally known as Amazon S3, as well as elastic block storage, and more.

The first, and virtually accessible data, to examine, is AWS'southward market share of the web hosting industry.

According to W3Techs, these are the electric current, up-to-date cloud market share numbers for web hosting services beyond the globe:

Web hosting market share. (Source: W3Techs)
Spider web hosting market place share. (Source: W3Techs)

Amazon is in second place, neck-and-neck with GoDaddy Group, at 5.viii%. Google is currently in fifth place at 3.2% and Microsoft is the clear straggler at just 1% market share of commercial and individual spider web hosting combined.

Even though AWS isn't specifically a hosting visitor, they've already overtaken Endurance Group (behind cheap shared hosting giants Bluehost and Hostgator) and established a clear lead among the three deject giants.

And if you don't discover the number 5.viii% impressive, permit's have a closer wait at what that actually means.

There are Over 9 Meg Live Websites Using AWS

Just a few per centum of the web hosting market is a big deal. To further illustrate exactly how large, we're going to wait at the live number websites currently hosted by AWS.

Co-ordinate to BuilWith's latest data, an estimated 9,054,410 live websites are hosted by AWS.

Amazon usage statistics from 2012-2020. (Source: BuiltWith)
Amazon usage statistics from 2012-2020. (Source: BuiltWith)

9 meg. That'south more the entire population of Switzerland.

AWS is the hosting service provider of selection for a lot of global enterprises and well-known companies, including Netflix, Facebook, and the BBC.

Considering of data-intensive video, Netflix lone uses over 100,000 server instances for its storage and calculating needs. Many leading companies use AWS to host their websites and data.

Cloud hosting usage distribution in the top 100k sites. (Source: BuiltWith)
Deject hosting usage distribution in the top 100k sites. (Source: BuiltWith)

With 34% market share amid cloud hosting providers in the pinnacle 100k, Amazon owns the bigger slice of the visible internet out of the large three.

Google Deject comes in at thirteen% and Microsoft Azure clocks in at just 7%, a share that'due south over 4 times smaller than AWS.

Simply of course, the IaaS marketplace isn't only about spider web hosting either. In a survey, 61% of technical professionals said they were currently running a cloud app with AWS. Amazon's platform every bit a service (PaaS) products for deployment are also the market leader.

AWS Historical and Current Revenue

AWS quarterly and annual reports over the past ten years reveals a story of incredible growth.

In just 7 years, the revenue has increased more than ten times over.

AWS annual revenue growth from 2013-2019. (Source: Statista)
AWS annual revenue growth from 2013-2019. (Source: Statista)

From $3.ane billion in 2013 to over $35 billion in 2019, the revenue growth of AWS has been steady, to say the to the lowest degree. Information technology has shown that a cloud platform can not only be a billion-dollar concern but a multi-billion, peradventure fifty-fifty a hundred-billion dollar business.

But equally information technology has grown massive in both revenues and market share, it has inevitably started to slow downward as other cloud service upstarts speed upwards.

First, permit's have a look at the expected growth rate in the public deject marketplace in full general. According to good analysts at Gartner, total public cloud revenues will grow from $227.8 billion in 2019 to $354.6 billion in 2022.

Worldwide public cloud revenue forecast. (Source: Gartner)
Worldwide public deject revenue forecast. (Source: Gartner)

IaaS is forecasted to explode with an impressive 24% YoY growth rate. Together, IaaS and PaaS markets are expected to grow by more than $58 billion in revenue over the coming years.

Side by side, permit'due south accept a look at AWS's growth rate. AWS had an explosive growth charge per unit early on but has started to tedious down.

AWS revenue growth. (Source: CNBC)
AWS revenue growth. (Source: CNBC)

As y'all can see, 2019 is the first year the growth rate has dipped below 40% in over 5 years, and it remained below 40% consistently for quarters two, three, and iv.

Co-ordinate to information from Synergy Research Grouping, AWS is already starting to slow down compared to the overall market, while major competitors like Microsoft, Google, Alibaba, and Tencent are still growing faster and increasing their market share in the process.

Cloud provider competitive positioning. (Source: Synergy Research Group)
Cloud provider competitive positioning. (Source: Synergy Research Group)

For example,  Microsoft Azure has established itself as ane of the market leaders, past clocking in at 62% YoY growth Q4 2019, far above the boilerplate growth rate.

The other cloud solutions have matured while AWS is no longer the clear-cut innovator and market leader anymore.

Plus, many big enterprises don't seem to like the idea of beingness solely reliant on a single cloud provider. That has led to the partial migration of some of AWS's highest quotient clients, like Apple moving $400-600 meg of cloud spending to Google Deject Platform.

All in all, it seems likely that AWS will continue to abound at a sustainable rate, but lose marketplace share every bit the pie grows to competitors that are growing at a faster prune, like Azure or Google.

Is AWS Secure?

AWS is defended to maintaining a secure and compliant platform for its customers. You have scalable admission command and encryption available for any sensitive data you want to process or shop in the cloud.

AWS security features – security, identity, and compliance.
AWS security features.

Ongoing threat monitoring will assist you detect and deal with potential security threats in real-time before they atomic number 82 to an actual problem. But of course, no thing how secure a system is, yous can't always forestall user error.

Even the high profile Upper-case letter I case, which was caused by a disgruntled former employee, happened considering sites had misconfigured their firewalls, leading to a vulnerability.

Vulnerabilities on individual accounts and websites due to misconfiguration are hard to avoid when you lot allow customers configure and gear up their own websites and systems.

AWS vs. Google Cloud Platform

And then far, we've covered AWS's general market place share in deject calculating and services, but we haven't looked at how they stack up against a competitor in particular.

In this section, we'll exercise a deep dive into both AWS and the Google Deject Platform, and see who comes out on tiptop in unlike areas.

Start, let's take a await at how they stack up against each other in web hosting market share according to W3Techs data.

Historical web hosting providers usage.
Historical web hosting providers usage. (Source: W3Techs)

Surprisingly, over the past year, both Amazon and Google accept lost a tiny fleck of market share. AWS dropped 0.one% to 5.8%, and Google dropped 0.ii% to three.ii%.

But when you examine the BuiltWith information on live websites, the numbers are much closer:

Cloud hosting usage distribution.
Cloud hosting usage distribution. (Source: BuiltWith)

At 9 million and 8 million websites a piece, they are head and shoulders above other IaaS providers like Microsoft, at only 767,602 sites.

When it comes to the complete cloud acquirement from IaaS, PaaS, and private cloud services, AWS has a much larger advantage over Google in terms of market share.

Their revenues reflect this. AWS hit a $40 billion annual run rate before this twelvemonth and Google Cloud Platform simply hitting a $10 billion annual run charge per unit.

Inquiry from Synergy Research Group, confirms how big the gap between AWS and the contest withal is.

IaaS, PaaS, private cloud market share growth.
IaaS, PaaS, private cloud market share growth. (Source: Synergy Research Grouping)

In 2019, AWS had a 33% market share, Microsoft xvi%, and Google was in tertiary place with 8%.

But market share isn't everything. One of the most of import factors when it comes to hosting and cloud services is reliability.

Google Cloud Platform and AWS are also industry leaders when it comes to uptime, with both merely reporting a total of about 300 hours between May 2018 and May 2019.

AWS, Azure, and GCP reported downtime.
AWS, Azure, and GCP reported downtime. (Source: NetworkWorld)

On the surface, AWS was the slightly more reliable option, with 338 reported hours vs. Google GCP's 361.

Azure and Google Cloud couldn't be more unlike, with a deviation of over 1,500 hours.

For more than data, read our in-depth Google Cloud vs AWS comparison where we cover infrastructure, services, security, networks, latency, and more.

AWS vs. Microsoft Azure

Amazon and Microsoft are currently the two biggest players in the deject infrastructure market, so information technology makes sense to compare AWS vs Azure side-by-side.

Only the spider web hosting side of things tells a different story, according to the latest data from W3Techs.

Historical web hosting providers usage.
Historical web hosting providers usage. (Source: W3Techs)

At 5.viii%, Amazon is the 2d-largest hosting provider, whereas at 1% Microsoft comes in after niche players like the folio builders Wix and Squarespace.

Even in the top 10,000 most visited websites, AWS has a significant lead according to the latest data from BuiltWith.

Pie chart showing Cloud Hosting Usage Distribution in the Top 10k sites
Deject hosting usage in the top 10K sites. (Source: BuiltWIth)

Amazon has a 41% market share, while Azure is stuck at 6%.

When it comes to acquirement, Microsoft doesn't release Azure-specific acquirement numbers, simply Microsoft's intelligent deject services totaled $xi.45 billion in acquirement in 2019. It's not articulate what percentage is from Azure.

On the other hand, AWS did over $35.02 billion in revenue in 2019. More than three times Microsoft's total book.

AWS has a big lead, but Microsoft Azure is growing much faster. AWS registered only 34% YoY growth in Q4 2019 vs Azure's impressive 62%.

AWS also lost a $10 billion cloud infrastructure deal with the Pentagon to Microsoft (although Amazon is trying to sue and undo the conclusion.)

Microsoft won some other high-profile deal when they signed with the NBA for a multi-yr deal to use Azure and Surface to provide personalized experiences to their customers.

High-profile public cloud deals going to Microsoft rather than AWS tip the scales fifty-fifty further in Microsoft's favor, boosting their growth reward.

Merely what if you care about more than just market share?

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