These numbers show how AWS dominates cloud market, drives Amazon’s profits

These numbers show how AWS dominates cloud market, drives Amazon’s profits
24 Sep, 2018

As cloud computing continues to be adopted across enterprises of different sizes and at different levels, Amazon's cloud division Amazon Web Services (AWS) is not only dominating in terms of market share, but also accounts for more than half of its parent's profits.

According to a Forbes report that cites market research and statistics firm Statista, more than 64% of enterprises globally are running their apps on AWS compared to 45% of enterprises using Microsoft’s Azure platform. Only 18% of enterprises subscribe to Google's cloud platform followed by IBM at 10%, Oracle at 6% and Alibaba at 2%. Interestingly, VMware on AWS accounts for 8% of usage in enterprises.

AWS contributed to nearly 55% of e-commerce giant Amazon’s overall operating profit in the second quarter of 2018, although it accounted for just 12% of net sales. 

Another report from software-as-a-service provider RightScale showed that Microsoft Azure's adoption has increased from 43% to 58% at a compounded annual growth rate of 35% compared to AWS' adoption which grew from 59% to 68%.

"Enterprise respondents with future projects [the combination of experimenting and plans to use] show the most interest in Google [41%[," the report said.

Future interest in adoption of Azure stood at 31% followed by AWS at 24% and IBM at 20%.

According to market research firm Gartner, the public cloud services market is projected to grow by 17.33% in 2019 to total $206.2 billion, up from $175.8 billion in 2018.