Episode 27: Cloud market share and key players
- Embedded IT
- Feb 25, 2025
- 3 min read
Updated: Jan 16
This article is part of our Cloud Computing series, exploring the technology, commercial models, and risks organisations need to understand when adopting cloud services.
Cloud services now underpin much of modern IT, but the market behind them is far from simple. A small number of providers dominate infrastructure, while the platform and software layers are fragmented and still evolving. Understanding how market share works across IaaS, PaaS, and SaaS helps organisations make clearer procurement decisions and select services that genuinely meet their needs.
This builds on our introduction to cloud computing, which sets the foundation for this topic.
The major providers in the infrastructure market
Infrastructure as a service remains the most consolidated layer of the cloud market. Three companies hold around two thirds of global market share.
AWS leads with roughly 32 percent, helped by a seven-year head start and strong appeal among technical teams such as CTOs, developers, and startups. Its reputation for deep technical capability continues to attract organisations looking for flexibility and specialist tools.
Microsoft Azure follows with around 21 percent and is growing faster than AWS. Its success is closely tied to Microsoft’s wider brand strength and the integration offered with services like Microsoft 365. Many organisations feel more confident buying cloud services from a provider they already rely on.
Google Cloud Platform holds around 11 percent and offers broadly similar capabilities and pricing to AWS and Azure. While it has not yet reached the same level of market presence, its strength in data, search, and AI positions it well for future growth. As AI and machine learning evolve, GCP is likely to become increasingly competitive in data driven services.
Together, these three providers account for roughly 65 percent of the market, creating significant supplier concentration. This gives buyers fewer opportunities to shop around and often results in commoditised pricing and offerings.
The wider cloud landscape beyond the top three
Outside the leading providers, several other organisations operate in the cloud market, though with far smaller influence.
IBM has been in cloud for many years but has struggled to gain the same brand traction as AWS or Azure. Oracle remains strongest at the platform layer due to its database heritage, offering credible services but not at the same scale as the major infrastructure providers.
Alibaba Cloud holds a large share globally thanks to the Chinese market. However, UK organisations often hesitate due to data sovereignty and geopolitical considerations.
Beyond these names, numerous smaller providers offer IaaS but generally mirror the services of the top three at a smaller scale.
Understanding platform as a service choices
The platform as a service market is harder to define, as it depends heavily on what an organisation intends to buy. Databases provide a useful example. Most applications require one, and the biggest players remain Oracle and Microsoft. Their databases can be purchased as a service across almost all cloud environments.
Selecting the right PaaS option requires careful technical assessment. Buyers must confirm that the platform integrates with existing systems, meets performance requirements, and genuinely suits the intended use case.
The fragmented world of SaaS providers
Software as a service is the broadest and most diverse part of the cloud market. Thousands of companies offer cloud delivered tools, from well known platforms like Microsoft 365 and Salesforce to specialist products supporting specific business processes.
Most software vendors now operate on recurring cloud based licensing models rather than perpetual licences. While convenient, these models can include risks such as auto renewals, lock-in, and limited termination options. Organisations need to review licensing terms carefully to avoid surprises later on.
SaaS selection is driven far more by functionality than price. Market share matters less, because each tool serves a different purpose. The right choice depends on how well the software supports the required business process and whether its pricing model is transparent and workable.
A cloud market still evolving
Although cloud services have been around for around two decades, the market continues to develop. Infrastructure has largely stabilised, while platform services still have room to mature. SaaS remains the most fluid layer, with huge variation in functionality, pricing, and vendor maturity.
To make sound procurement decisions, organisations should keep three principles in mind:
Identify whether the service is IaaS, PaaS, or SaaS.
For infrastructure, the major providers offer safe and predictable options.
For platform and software services, ensure the solution fits both the technical environment and the business process, with a clear understanding of how charges are applied.
Clarity on these questions helps ensure cloud investments deliver value while avoiding unnecessary complexity or risk.
For organisations reviewing their cloud strategy or navigating complex procurement decisions, get in touch.
Continue exploring Cloud Computing
Continue exploring Cloud Computing
