EDITOR’S QUESTION
WHAT SHOULD ORGANISATIONS
LOOK FOR IN AN IAAS PROVIDER?
he worldwide
infrastructure as a
service (IaaS) market
grew 31.3% in 2018 to
total US$32.4 billion, up
from US$24.7 billion in
2017, according to Gartner, Inc.
T
Amazon was the No. 1 vendor in the IaaS
market in 2018, followed by Microsoft,
Alibaba, Google and IBM.
Sid Nag, Research Vice President at
Gartner, said: “Despite strong growth
across the board, the cloud market’s
consolidation favours the large and
dominant providers, with smaller and
niche providers losing share.
“This is an indication that scalability
matters when it comes to the public cloud
IaaS business. Only those providers who
invest capital expenditure in building out
data centres at scale across multiple
regions will succeed and continue to
capture market share. Offering rich feature
functionality across the cloud technology
stack will be the ticket to success, as well.”
In 2018, the top five IaaS providers
accounted for nearly 77% of the global IaaS
market, up from less than 73% in 2017.
www.intelligentdatacentres.com
According to Gartner, market
consolidation will continue through
2019, driven by the high rate of growth
for the top providers, which experienced
aggregate growth of 39% from 2017 to
2018 compared with the more modest
growth of 11% for all other providers
during the same period.
“Consolidation will occur as organisations
and developers look for standardised,
broadly supported platforms for
developing and hosting cloud
applications,” said Nag.
“As the cloud business continues to
gather momentum and hyperscale
cloud providers consolidate the market,
product managers at cloud MSPs must
look at other ways to differentiate, such
as focusing on vertical industries and
getting certified in the hyperscale cloud
provider partner programs in order to
drive revenue.”
Gartner analysts will provide additional
analysis on cloud strategies and
infrastructure and operations trends at
the Gartner IT Infrastructure, Operations
and Cloud Strategies Conferences taking
place November 25 to 26 in London and
December 9 to 12 in Las Vegas.
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