Top 5 Cloud Market-Share Leaders: AWS, Microsoft, Google In Q3 2022

Here’s a breakdown of the top five cloud services market-share leaders for the third quarter of 2022 with AWS, Microsoft and Google combining for 66 percent share of the global cloud infrastructure services market.

Worldwide enterprise spending on cloud infrastructure services reached $57.5 billion in the third quarter of 2022, representing a 24 increase in year-over-year revenue growth.

The three big global cloud giants—Amazon Web Services, Microsoft and Google—continued to consolidate and grow their positions as cloud market-share leaders in the third quarter of 2022, according to data from IT market research firm Synergy Research Group.

John Dinsdale, a chief analyst at Synergy Research Group, said cloud services revenue growth would have been much higher in the third quarter if the Chinese market wasn’t suffering from COVID-19-related lockdowns and if the U.S. dollar strength was not at such a high level.

“It is a strong testament to the benefits of cloud computing that despite two major obstacles to growth, the worldwide market still expanded by 24 percent from last year. Had exchange rates remained stable and had the Chinese market remained on a more normal path, then the growth rate percentage would have been well into the 30s [percent],” said Dinsdale in a statement.

[Related: Google Cloud’s 5 Big Earnings Takeaways: Hiring, Workspace, Mandiant]

AWS, Microsoft, Google Won 66% Market Share

AWS, Microsoft and Google combined for 66 percent share of the $57.5 billion in cloud services spending in the third quarter of 2022.

Comparatively, in third-quarter 2021, AWS, Microsoft and Google captured a combined 61 percent share of the total $45.4 billion in cloud spending.

“Beyond these three, all other cloud providers, in aggregate, have been losing around 3 percentage points of market share per year but are still seeing strong double-digit revenue growth,” said Dinsdale.

Besides the big three cloud leaders, the other large global cloud market-share vendors include Alibaba, IBM, Salesforce, Tencent, Oracle, China Telecom, Huawei, Fijitsu, NTT, Snowflake, SAP and Rackspace.

In aggregate all other cloud providers have tripled their revenue since late 2017, although their collective market share has plunged from 50 percent to 34 percent as their growth rates remain far below AWS, Microsoft and Google, Synergy said.

Cloud Services Spending Hits $217 Billion

Over the past trailing 12 months, total enterprise cloud services spending hit a whopping $217 billion on a global basis, according to Synergy data.

Synergy’s research includes global cloud spending on Infrastructure as a Service, Platform as a Service and hosted private cloud services.

CRN breaks down the top five cloud services market-share leaders for the third quarter of 2022.

No. 5: IBM

Q3 2022 Market Share: 3 Percent

Q2 2022 Market Share: 4 Percent

Q3 2021 Market Share: 4 Percent

IBM won 3 percent share of the worldwide cloud services market in third-quarter 2022, down from 4 percent share one year ago.

During its recent third-quarter 2022 earnings report this month, IBM said hybrid cloud revenue over the past 12 months reached $22.2 billion, representing an increase of 15 percent year over year.

The Armonk, N.Y.-based technology giant highlighted cloud and artificial intelligence technologies as key strengths for the company.

“Clients are dealing with everything from inflation to demographic shifts, from supply chain bottlenecks to sustainability efforts,” said IBM CEO Arvind Krishna during the company’s third-quarter earnings report this month. “By deploying powerful hybrid cloud and AI technologies, IBM is helping businesses seize new opportunities, overcome today’s challenges and emerge stronger.”

No. 4: Alibaba

Q3 2022 Market Share: 5 Percent

Q2 2022 Market Share: 5 Percent

Q3 2021 Market Share: 6 Percent

China’s largest cloud services provider, Alibaba, won 5 percent share of the enterprise cloud services spending market during third-quarter 2022, down from 6 percent year over year.

Alibaba continues to best its regional competitors including Huawei, China Telecom and Tencent.

For its second-quarter 2022, Alibaba generated $3.57 billion in cloud sales, which is comprised of Alibaba Cloud and DingTalk.

The China-based company’s cloud market share has been hovering around 5 percent to 6 percent share since 2018.

No. 3: Google

Q3 2022 Market Share: 11 Percent

Q2 2022 Market Share: 10 Percent

Q3 2021 Market Share: 10 Percent

Google Cloud continues to capture more market share as it won 11 percent share of the worldwide cloud market in third-quarter 2022, up from 10 percent share in third-quarter 2021.

Mountain View, Calif.-based Google Cloud generated a total of $6.87 billion in cloud sales during its third quarter, representing an increase of 38 percent year over year.

“The long-term trends that are driving cloud adoption continue to play an even stronger role during uncertain macroeconomic times,” said Google CEO Sundar Pichai during the company’s recent third-quarter earnings report. “Google Cloud helps customers solve today’s business challenges, improve productivity, reduce costs and unlock new growth engines. … Google Cloud is a priority for the company and we continue to invest there.”

No. 2: Microsoft

Q3 2022 Market Share: 21 Percent

Q2 2022 Market Share: 21 Percent

Q3 2021 Market Share: 20 Percent

The world’s largest software company won 21 percent share of the global cloud services market in third- quarter 2022, up from 20 percent share one year ago.

In October, Microsoft reported cloud revenue totaling $25.7 billion for its first fiscal quarter 2023, up 24 percent year over year.

Microsoft cloud services sales were generated from Azure, Microsoft Office commercial and consumer products, Windows, as well as cloud services from server products.

“Microsoft Cloud revenue was $25.7 billion, up 24 percent year over year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and CFO of Microsoft, during the company’s first-quarter earning report this month.

No. 1: Amazon Web Services

Q3 2022 Market Share: 34 Percent

Q2 2022 Market Share: 34 Percent

Q3 2021 Market Share: 33 Percent

The longtime dominant leader in cloud services continued its reign in third-quarter 2022 by capturing 34 percent market share, up from 33 percent share one year ago.

AWS reported third-quarter 2022 sales hit $20.5 billion, up 27 percent year over year, representing the company’s lowest sales growth rate in years. For instance, in second quarter 2022, AWS increased revenue by 33 percent year over year.

Seattle-based AWS reported operating income of $5.4 billion during its third quarter.