Finbold has released a new report which found that, as of the first quarter (Q1) of 2024, Amazon and Microsoft command as much as 56% of the global cloud infrastructure market.

While the incentives of the COVID-19 mass migration online are long gone, the impact of widespread digitalization and the ongoing artificial intelligence (AI) boom are more than evident in the stellar growth of cloud infrastructure and the sector’s key providers.

The report also showed Microsoft Azure has been increasingly gaining on AWS as, in the last three years, its market share rose from 21% to 25%, while Amazon’s diminished from 33% to 41%.

Consolidating at the top

Azure’s rise can, to a significant extent, be attributed to Microsoft’s focus on novel technologies such as machine learning and AI, as exemplified by the early investment in OpenAI – the company behind ChatGPT.

The market has also seen some consolidation at the top in the last three years, with both Alibaba (BABA) and IBM (IBM) seeing their market share drop.

The former’s from 6% in late 2021 to 4% in early 2024 and the latter’s from 4% to 2%.

Other major players – Salesforce (CRM), Tencent (0700) and Oracle (ORCL) – have all stagnated.

“However, it is worth pointing out that the loss of market share does not mean that the companies have seen a reduction in their business, given that the entire cloud infrastructure market’s revenue has grown from just above $50 billion in Q4 2021 to over $76 billion in Q1 2024,” said Andreja Stojanovic, a Co-Author of the research.

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