Amazon.com, Inc. (NASDAQ:AMZN) leads the pack when it comes to cloud computing according to the latest report by market research firm Gartner. However, its position is under immense threat as Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Alibaba Group Holding Ltd (NYSE:BABA) ramp up investments in pursuit of market share.
Amazon Web Services holds the top spot in part because the e-commerce giant was the first one in the business. AWS posted 82% year over year growth in the recent quarter all but affirming its dominance in the business. The unit is on course to generate $14 billion in revenue this year as Amazon continues to provide a wide range of services compared to other players.
A research report by Synergy Research indicates that the Azure market share could be as much as 40%. However, it faces an uphill task to strengthen its position as Google and Microsoft ramp up investments on cloud computing.
Azure occupies the second spot on cloud offerings. The Gartner report indicates that the software giant cloud platform remains a firm favorite for businesses running Microsoft software in data centers. However, the platform continues to lag Amazon Web Services when it comes to revenue generation. Gartner expects the platform to generate revenues of about $3 billion this year.
Microsoft’s vast sales force remains the biggest threat to Amazon’s dominance on cloud offerings. The report indicates that the tech giant is aggressively eyeing corporate clients as well as enterprises as it looks to strengthen its position in the industry.
Google vs. Alibaba
Google occupies the third spot even on investing heavily on its cloud platform and sales approach to appeal to more businesses. A lack of some key cloud features on Google Cloud Platform remains the biggest hurdle on the search giant pursuit of more market share in the sector.
Chinese retail giant Alibaba Group Holding Ltd (NYSE:BABA) poses the biggest threat to Google’s third spot. The Chinese e-commerce giant plans to open new data facilities outside China as it bids to take Amazon and Microsoft head on, on the global scene.
Amazon stock shed 1.26% in market value in Thursday’s trading session to end the day at $964.17 a share.