Battle for Cloud Dominance: Amazon vs. Microsoft

Amazon and Microsoft are fighting for the top spot in the cloud

Global sales in the market for public cloud services reached a total of $545.8 billion in 2022, representing a year-on-year increase of almost 23%. The largest sub-segment was SaaS applications, with sales exceeding $246 billion, followed by infrastructure services (IaaS) at $115.5 billion and platform services (PaaS) at $92.6 billion. System infrastructure services for SaaS applications accounted for an additional $91.4 billion. Microsoft emerged as the leading SaaS provider and the largest player in the cloud market. The top five providers, including Microsoft, Amazon AWS, Salesforce, Google, and Oracle, captured a market share of more than 41%, representing a consolidation trend in the market. Microsoft’s market share was estimated to be almost 17%, while AWS held 13.5% market share primarily in basic cloud services like IaaS and PaaS. In this segment, AWS held over 40% of the market share, followed by Microsoft with 21.4%. Google, Alibaba, and IBM rounded out the top five with 6.1%, 5.2%, and 2.4% market share, respectively.

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