Amazon’s market dominance in IaaS: The consequences for innovation

Grazed from TechRepublic. Author: Thoran Rodrigues.

Back at the end of August, Gartner released their 2013 Magic Quadrant for Infrastructure-as-a-Service. The IaaS market is still a very volatile and competitive market that’s growing steadily, so changes on the relative positions of the market players are to be expected from one year to the next, but the dominance that Amazon Web Services has displayed is simply incredible, and raises some interesting questions related to the future evolution of the cloud market as a whole.

According to Gartner, AWS today has overwhelming market share. What do they mean by overwhelming? More than five times the compute capacity than the aggregate total of the other providers considered in the study. Not only that, but at the end of the report they state that the gap between the share leader (AWS) and the others is widening due to increasing customer expectations and the broadening of use cases. Are we headed towards a one-player cloud computing market?…

Dominance and market evolution

For the past years, the cloud market has been very dynamic. We’ve consistently seen new players come into the market, both in the form of traditional companies who launched cloud offerings and entirely new companies that were built from the ground up to provide cloud services. We’ve also seen the existing providers launch dozens of new services and functionalities, cut prices, and generally evolve their services at a very fast pace…

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