EDITOR’S QUESTION
WHAT SHOULD
ORGANISATIONS
LOOK FOR IN AN
IAAS PROVIDER?
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T
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.
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.
According to Gartner, market consolidation
will continue through 2019, driven by the
high rate of growth for the top providers,
24
INTELLIGENTCIO
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 programmes 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
between November 25 to 26 in London and
December 9 to 12 in Las Vegas.
www.intelligentcio.com