Industry analyst firm Gartner predicts that the infrastructure as a service (IaaS) market will grow 38.4% in 2016 to reach $22.4 billion by the end of the year. A new report from the Cloud Security Alliance (download a free copy here) finds that Microsoft is quickly catching up with industry leader Amazon in the race to tap this growing market. Amazon, Google, and Microsoft collectively own 82.0% of the IaaS market today. Even at companies that have a strict “no cloud” philosophy, IT leaders admit that nearly one fifth of their computing workloads will be in the public cloud this year versus their own data centers.
Amazon remains the dominant IaaS provider but Microsoft is closing their gap in market share. IT professionals at 37.1% of companies indicated that Amazon AWS is the primary IaaS platform at their organization. Microsoft Azure is a close second, at 28.4% followed by Google Cloud Platform at 16.5%. Enterprises using public cloud benefit in many ways including greater agility, lower cost of ownership, and faster time to market. IaaS providers, meanwhile, are also benefitting. In April 2016, Amazon reported that AWS is its most profitable division and is growing 64% annually.
IaaS adoption trends
Enterprises are increasingly relying on public cloud infrastructure providers such as Amazon, Microsoft, and Google for their computing resources, rather than managing their own data centers. A plurality of organizations (45.1%) have a “hybrid cloud” philosophy, another 25.1% prefer private cloud, and 21.5% take a predominantly public cloud approach. Just 8.2% of enterprises have a “no cloud” philosophy. Today, 31.2% of an enterprise’s computing resources come from infrastructure as a service (IaaS) providers. IT professionals expect that number to rapidly grow to 41.0% of computing workloads in the next 12 months.