In the second quarter of 2024, revenues of Amazon Web Services (AWS) rose to 19 percent, the highest since Q2 of 2022. AWS is one of Amazon’s strongest revenue segments, generating 90 billion U.S. dollars in 2023 net sales, up from 80 billion U.S. dollars in 2021. Amazon Web Services Amazon Web Services (AWS) provides on-demand cloud platforms and APIs through a pay-as-you-go-model to customers. AWS launched in 2002 providing general services and tools and produced its first cloud products in 2006. Today, more than 175 different cloud services for a variety of technologies and industries are released already. AWS ranks as one of the most popular public cloud infrastructure and platform services running applications worldwide in 2020, ahead of Microsoft Azure and Google cloud services. Cloud computing Cloud computing is essentially the delivery of online computing services to customers. As enterprises continually migrate their applications and data to the cloud instead of storing it on local machines, it becomes possible to access resources from different locations. Some of the key services of the AWS ecosystem for cloud applications include storage, database, security tools, and management tools. AWS is among the most popular cloud providers Some of the largest globally operating enterprises use AWS for their cloud services, including Netflix, BBC, and Baidu. Accordingly, AWS is one of the leading cloud providers in the global cloud market. Due to its continuously expanding portfolio of services and deepening of expertise, the company continues to be not only an important cloud service provider but also a business partner.

In 2021, 56 percent of respondents stated that they are using Microsoft Azure for their cloud services. Amazon Web Services (AWS) was on top of the list until 2020, when Microsoft took the place. Additionally, the percentage of respondents not using any form of cloud rose to eight percent in 2022 from four percent in 2021. Microsoft Azure, AWS and Google Cloud are the key players Among the reasons for the popularity of Microsoft Azure, AWS, and Google Cloud is their global cloud infrastructure. These vendors are a prominent choice for organizations as they provide cloud on-ramp services in data centers around the world while ensuring high security standards and achieving great levels of reliability. Further, private cloud takes the third place, meaning that organizations use a cloud computing environment that is dedicated entirely to that organization alone. What are the vendors’ key strengths? One of AWS’ key strengths is its wide variety of services, including storage, analytics, networking, developer tools, security, and enterprise applications, among others. This broad product portfolio makes AWS a great choice for customers seeking to boost developer functionality. Microsoft Azure, on the other hand, is a popular choice due to its combination of Azure, Teams, and Office 365, making it a good fit with all enterprise computing needs in a single place. Finally, Google Cloud’s hallmark is its expertise around open-source technologies, such as container technology, which makes Google’s offering compelling to customers who prioritize digital transformation. Importantly, these vendors continuously expand their repertoire of technologies and partners to offer customers a wide range of solutions for different use cases.

In the fourth quarter of 2024, the most popular vendor in the cloud infrastructure services market, Amazon Web Services (AWS), controlled 33 percent of the entire market. Microsoft Azure takes second place with 20 percent market share, followed by Google Cloud with 10 percent market share. Together, these three cloud vendors account for 63 percent of total spend in the fourth quarter of 2024. Organizations use cloud services from these vendors for machine learning, data analytics, cloud native development, application migration, and other services. AWS Services Amazon Web Services is used by many organizations because it offers a wide variety of services and products to its customers that improve business agility while being secure and reliable. One of AWS’s most used services is Amazon EC2, which lets customers create virtual machines for their strategic projects while spending less time on maintaining servers. Another important service is Amazon Simple Storage Service (S3), which offers a secure file storage service. In addition, Amazon also offers security, website infrastructure management, and identity and access management solutions. Cloud infrastructure services Vendors offering cloud services to a global customer base do so through different types of cloud computing, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Further, there are different cloud computing deployment models available for customers, namely private cloud and public cloud, as well as community cloud and hybrid cloud. A cloud deployment model is defined based on the location where the deployment resides, and who has access to and control over the infrastructure.

In late 2023, 51 percent of respondents indicated currently using AWS CloudFormation templates, which describe the AWS infrastructure the clients utilize. It is used for creating service or application architectures for quicker and more reliable provisioning of stacks.

Amazon Web Services (AWS) global cloud data centers operate in 34 geographic regions, each containing several availability zones (AZs). As of 2024, Europe/Middle East/Africa and Asia Pacific and China had 77 zones combined, which is over 70 percent of all AWS' AZs.

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In 2023, Amazon Web Services (AWS) generated 90.8 billion US dollars with its cloud services. From 2013 until today, the annual revenue of AWS cloud computing and hosting solutions continually increased.

Amazon - additional information Amazon.com went online in 1995, initially as a book store, and achieved almost immediate success. In 1998 the store expanded to include a music and video store and different other products, such as apparel and consumer electronics in the following years. The company is the undisputed leader of the e-retail market in the United States, ranking ahead of walmart.com and apple.com in terms of revenue.

Amazon Web Services In 2006, AWS launched as a cloud computing platform to provide online services. Amazon Elastic Compute Cloud and Amazon S3, which provide large virtual computing capacity, are the most well-known of these services. The company has dozens of locations in 25 different regions across the world and is continually expanding its global infrastructure to ensure low latency through proximity to the user.

From these data centers, Amazon is offering more than 200 fully featured services to its global customer base. Video streaming service Netflix is one of AWS’s largest customers, using Amazon’s services to store their content on servers throughout the world. Among its more than one million active users, AWS also lists other well-known organizations from various industries, such as Disney, the UK Ministry of Justice, Kellog’s, Guardian News and Media, and the European Space Agency.

In 2024, 49 percent of respondents are already running significant workloads on Amazon Web Services (AWS). Cloud computing as-a-service One of the most prevalent ways for companies to utilize cloud computing is to take advantage of the various “as-a-service” options available from many of the world’s largest tech companies. These services provide organizations with access to computing power, software, and other cloud-related functions without the need for in-house hardware. The software-as-a-service market alone is expected to grow well past the 232 billion U.S. dollar mark by 2020, while the infrastructure-as-a-service market is expected to reach around 195 billion itself in 2024. Companies such as Amazon, Microsoft, and Google have all been quick to incorporate cloud services into their offerings, providing small and mid-sized companies with the opportunity to utilize cloud computing resources without the need for extensive investments into hardware. Having only introduced the business segment in 2014, Microsoft’s intelligent cloud segment has grown rapidly, rivaling even the company’s long-established personal computing segment in terms of revenue generation.

Cloud computing has become an integral part of modern business operations, with public cloud services leading the way. A 2024 survey reveals that 97 percent of businesses worldwide prefer using public cloud services, highlighting the widespread adoption of this cost-effective model. The pay-as-you-go approach allows companies to scale resources as needed, making it an attractive option for organizations of all sizes. Market leaders and revenue growth The cloud computing market is dominated by a few key players, with Amazon Web Services (AWS) maintaining a strong lead. In 2023, AWS held a 48 percent market share in the global infrastructure as a service (IaaS) and platform as a service (PaaS) sectors. Microsoft Azure, Alibaba Cloud, and Google Cloud Platform follow, with the four hyperscalers expected to generate a combined revenue of 167.3 billion U.S. dollars. These companies leverage their global scale, innovative technology, and deep expertise to offer a wide range of services beyond basic cloud computing resources. Regional market forecasts The data center market, closely tied to cloud computing, is poised for significant growth across all regions by 2029. The United States is projected to lead with an estimated revenue of 212.06 billion U.S. dollars, far outpacing other markets such as the United Kingdom, which is forecast to reach 23.76 billion U.S. dollars. This substantial difference underscores the dominance of the U.S. market in the global cloud computing landscape and highlights the potential for continued expansion in other regions.

As of 2024, a total of approximately 42,240 products and services were offered on Amazon Web Services' (AWS) marketplace, of which 11,478 belonged to the largest category, infrastructure software. The AWS marketplace is a digital catalog on which independent software vendors can list their products and services. This enables AWS customers to pick from various solutions that run on AWS to cater to their specific needs.

According to the latest report, 80 percent of enterprise respondents indicated that they were adopting Microsoft Azure for public cloud usage. AWS, Microsoft Azure, and Google Cloud, also known as hyperscalers, are among the leading cloud computing platform providers worldwide. Public cloud A public cloud refers to a computing service offered by a provider over the public internet whereby computing resources are made available to the customer. These resources may include storage capabilities, virtual machines, or applications. The customer only pays for resources actually consumed, such as bandwidth or CPU cycles. For organizations, this can lead to cost reduction versus having to buy and maintain on-premises hardware. Cloud computing benefits Cloud adoption is driven by several factors, including increased efficiency, quick deployment, and security. Because cloud providers offer customers to deploy their workloads from many locations globally, latency is reduced, which in turn enhances the customer experience. In addition, cloud-based services are more resilient, as the failure of a virtual machine does not necessarily mean that service availability is negatively impacted. To reap the most benefits, organizations are assessing which cloud models fit their case best and looking to pursue hybrid cloud strategies in the future, which includes the integration of both public and private clouds.

In 2021, 74 percent of enterprises indicate using cloud hosting/infrastructure services such as AWS EC2 or Azure VMs. Enterprises are also using platform as a service (PaaS) solutions including Heroku or Azure App Service to a great extent. Notably, traditional small and midsize businesses use less cloud services in general and therefore have less complex cloud setups.

In 2023, 305 of the respondents from a global survey state that they are using the AWS cost explorer to help them manage their Amazon Web Services costs. The AWS cost explorer lets its user create reports to analyze both usage data and costs. Home grown tools takes the third place with 200 respondents using them to manage their costs.

As of 2024, around 25 percent of SMBs currently used VMware vSphere/vCenter's cloud services. Additionally, 13 percent of businesses stated that they experimented with AWS Outposts' services, while 10 percent planned to use it.

In 2022, 51 percent of respondents from a global survey state using Amazon Web Services (AWS) for running their containers in the public cloud. Container technology is a method of packaging an application. Containers can be run isolated from other processes. All of the major cloud computing providers (AWS, Microsoft Azure, and GCP) have embraced container technology today.

With 73 percent, Microsoft Azure took most of the market share for cloud computing in the Netherlands in 2020. Azure had within the healthcare sector the highest share with 90 percent, whereas AWS had just six percent. Amazon Web Services, Microsoft Azure, and Google Cloud Platform are cloud services in which you can either store data, backup data, compute data or use specialized software created by either platform.

As of 2024, Amazon Web Services (AWS) is the most popular cloud platform among software developers worldwide, with around 48 percent of surveyed software developers having used it in the past year. Microsoft Azure ranked second with 27.8 percent.

As of 2024, 38 percent of respondents to a recent survey of technical professionals indicated that they were already using Microsoft Azure Stack private cloud services. Microsoft Azure Stack takes the first place, and VMware vSphere/vCenter the second, respectively. Further, Amazon Web Services (AWS) Outposts, as well as Google Anthos and VMware vCloud Director are leading in terms of planned usage. What is VMware vSphere? VMware vSphere is a cloud computing virtualization platform that enables users to place application workloads on compute resources. The platform acts as computing infrastructure that includes networking resources as well as storage and CPU. This infrastructure encompasses different products and technologies, including the ESXi hypervisor and vCenter management software, that are managed as a unified operating environment. These components work together to ensure virtual servers function properly. What is a private cloud? A private cloud is a computing service offered over a private network or the internet to a selected group of users. Private clouds are inaccessible to the public, which also lends the private cloud the alternate names of corporate cloud or internal cloud. Although private clouds may offer more privacy and security through internal hosting and company firewalls, the company’s IT department is responsible for the management of the private cloud, which demands high levels of expertise.

The worldwide public cloud computing market continues to grow and is expected to reach an estimated 723.42 billion U.S. dollars in 2025. This encompasses business processes, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services. A public cloud is a cloud deployment model that offers computing services over the internet. The physical hardware of this cloud model is shared by multiple companies. The services offered to customers include storage, bandwidth, or CPU cycles. Public clouds are cost-effective Among the many benefits of a public cloud is that services are offered to the customer through a pay-as-you-go model. This means that no upfront investments must be made, which otherwise lead to running costs for maintaining on-premise hardware and application infrastructure. Instead, the cloud service provider ensures proper management and maintenance of the system and the customer only pays for services consumed. AWS, Azure, and Google are dominating the market Key companies offering public cloud platforms to customers are Amazon Web Services, Microsoft Azure, and Google Cloud. Their preeminence on the market is demonstrated by organizations’ plans to continually migrate their data to the cloud and use cloud applications for their business operations on a global scale.

The amount of corporate data stored in the cloud has increased in recent years and is predicted to surpass 60 percent by 2022. This is a significant rise from 2015 when only 30% of corporate data was stored in the cloud. This trend is expected to continue in the future.

What is driving the adoption of cloud technology?

The global public cloud services market is expected to grow by approximately 22 percent in 2023, which equates to around 600 billion U.S. dollars. As businesses expand, their data storage and IT infrastructure needs become increasingly challenging to meet with on-premises storage servers and hardware alone. This growth creates a crucial need for scalability, which can only be efficiently and cost-effectively managed through cloud-based services. Additionally, companies are moving towards cloud technology to enhance their security, reliability, and business agility.

The four major players in the cloud market

Amazon, Google, Microsoft, and Alibaba are known as the big four in cloud technology, controlling over two-thirds of the global cloud market. Amazon Web Services (AWS) has held the majority of the market share for several years, with 32% of the entire market. Microsoft is the closest competitor, growing its market share year on year. Its suite of Office products offered on the cloud for enterprises and consumers worldwide has contributed to their success.