Amazon dominates cloud infrastructure, cloud app platforms a 4-way race

|By:, SA News Editor

Though Amazon Web Services (AMZN) has been seeing intensifying competition in the cloud infrastructure (IaaS) market, Synergy Research's numbers, like Gartner's, suggest AWS continues to dominate.

Synergy estimates AWS had a 35% IaaS share in Q3, or 5x that of #2 IBM, whose position has been bolstered by SoftLayer. All other vendors are assigned shares below 3%.

The situation is a little different in the cloud app platform (PaaS) market. Salesforce's (CRM) Heroku, long a major player, is given a market-leading 18% share. But AWS is close behind at 17%, and so are Microsoft's (MSFT) Windows Azure (14%) and Google's (GOOG) App Engine (13%). All other vendors are estimated to have sub-5% shares.

Altogether, Synergy thinks Amazon grew its IaaS/PaaS revenue by 55% Y/Y, outpacing the 46% growth seen by the overall market. Moreover, AWS' IaaS/PaaS revenue is believed to have eclipsed that of Microsoft, Google, IBM, and Salesforce combined.

The report drives home the competitive challenges faced by Rackspace (RAX), VMware (VMW), Red Hat (RHT), and other firms striving to take IaaS and/or PaaS share from market leaders.

Synergy thinks the traditional Web hosting market, which Rackspace remains well-exposed to, and which has been pressured by the IaaS market's rise, only grew 3% Y/Y in Q3.

Last week, Stanley Druckenmiller cited AWS and its disruptive impact on traditional enterprise IT as a reason for shorting IBM.