Cloud Computing Growth

Synergy Research Group sized the Q4 enterprise spend on cloud services at $37 billion, up 35% year-over-year.  The full-year spend was $129 billion.  Microsoft Azure continued its growth, reaching a 20% market share, second only to AWS in the low 30s.  Azure has doubled its market share over the past four years.  AWS posted $12.7 billion in Q4 revenue.  Google Cloud has a 9% market share but remains a money loser.  Except for Alibaba, at 6%, the smaller cloud providers continue to lose market share.

Azure grew 50% year-over-year, while AWS grew 28%.

“We believe Azure’s cloud momentum is still in its early days of playing out within the company’s massive installed base, and the Office 365 transition for both consumer/enterprise is providing growth tailwinds over the next few years,” said Wedbush analyst Daniel Ives.

“Based on our conversations with CIOs, CISOs, and IT product managers globally over the last month, we believe cloud-driven architecture IT growth in 2021 could surpass that of 2020 as more enterprises rip the band-aid off on digital transformations.”

Wedbush analyst Daniel Ives

AWS CEO Andy Jassy will succeed CEO Jeff Bezos at Amazon in Q3.  AWS generates half of Amazon’s profits but generates only ten percent of revenues.  Bezos will assume the role of Executive Chairman.

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