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

Amazon dominates cloud infrastructure, cloud app platforms a 4-way race • 11:53 AM

• 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.

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