In this article, we will look at the 5 biggest cloud providers by market share in 2024. We have also discussed the latest revenue and growth of top cloud providers in another article. If you are interested in reading about that along with a more extensive list, head straight to the 15 Biggest Cloud Providers by Market Share in 2024.
5. Salesforce Inc
Market Share Q4 2023: 3%
Salesforce (CRM) raised its annual profit forecast after beating third-quarter Wall Street targets. The increase is attributed to strong demand for its cloud and business products with the ongoing economic uncertainty and drove shares up 7%. Salesforce anticipates fourth-quarter revenue and profit to exceed expectations, indicating a potential uptick in tech spending amid cooling inflation. The company’s recent hiring of 3,000 staff after margin-focused job cuts earlier, reflect a focus on profitability. Additionally, the launch of its generative AI tool, Einstein Copilot, aims to enhance productivity across its suite of apps. Salesforce’s optimistic outlook signals a stable trajectory.
4. Alibaba Group Holding Ltd
Market Share Q4 2023: 4%
Alibaba Cloud is a cloud computing arm of Alibaba Group that caters to online businesses and Alibaba’s e-commerce ecosystem. Based in Singapore for international operations, it offers pay-as-you-go cloud services like elastic compute, storage, databases, big-data processing, DDoS protection, and CDN. Dominating China’s cloud market and ranking atop Asia Pacific by Gartner, it boasts 24 regions and 74 availability zones globally. Recognized in Gartner’s Magic Quadrant for cloud infrastructure as a service, Alibaba Cloud has secured a spot in the Visionaries’ quadrant since June 2017 which confirms its standing in the competitive cloud computing landscape.
3. Alphabet Inc
Market Share Q4 2023: 11%
Google Cloud, a subsidiary of Alphabet, stands among the top three cloud providers globally, commanding an 11% share of the cloud infrastructure service market in the third quarter of 2022. Offering infrastructure, platform, and various enterprise services, Google Cloud competes with industry giants like Microsoft and Amazon Web Services.
In Q4 2023, Google Cloud raked in $9.2 billion, with a 25.66% YoY increase and an $864 million operating income compared to a $186 million loss the previous year. Alphabet’s overall net income for 2023 hit $73.8 billion, partly due to extending server and networking equipment lifespan, cutting Q4 depreciation costs by $983 million and boosting net income by $765 million. Despite a $11 billion Q4 capital expenditure driven by AI investment, Google’s shares dipped 6% post-earnings due to lower-than-expected ad revenue.
2. Microsoft Corp
Market Share Q4 2023: 24%
Microsoft reported 33% increase in net profit for its fiscal 2024 second quarter, buoyed by robust Azure cloud business and exceeding analysts’ revenue expectations. Net profit increased to $21.9 billion, driven by strong productivity and cloud sectors. Revenue for the October-December period increased 18%, surpassing $62 billion. Despite this, Microsoft’s stock experienced a slight dip in after-hours trading. The company’s emphasis on AI integration across its tech stack, particularly in Azure, continues to attract growth, with intelligent cloud division revenue climbing by 20%.
1. Amazon.com, Inc
Market Share Q4 2023: 31%
In the fourth quarter of 2023, Amazon Web Services (AWS) exhibited stable financial performance, recording a revenue of $24.2 billion, with a 13% year-on-year growth. This revenue increase also confirmed AWS’s dominant position in the public cloud platform market, with a 31% share. The company’s strategic decision to extend the lifespan of server hardware from five to six years is also expected to yield operational benefits, as CFO Brian Olsavsky forecasts a $900 million boost to operating income in the first quarter of the fiscal year.
Despite its competitors experiencing a decline in stock value post-quarterly results, Amazon saw its shares increase, reflecting investor confidence in AWS’s performance. AWS’s relentless focus on innovation, particularly in areas like generative AI and large language models, positions the company for sustained growth. As the cloud services market continues to expand, AWS remains at the forefront. It is the biggest cloud provider by market share in 2024.
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