AWS, Microsoft have 56% of cloud services market: Finbold

Amazon and Microsoft are dominating the world’s cloud services market, capturing 56% of the market between them, according to analysis from Finbold.

The finance and cryptocurrency trading platform estimates that Amazon Web Services (AWS) had a market share of 31% in the first quarter of 2025, compared to 25% for Microsoft Azure. But Microsoft is increasingly challenging AWS for market dominance, with AWS’s market share falling from 33% in the final quarter of 2021 while Azure’s share rose from 21%.

Google Cloud ranks third with a market share of 11%, up from 10% in Q4 2021, while Alibaba Cloud’s share has fallen from 6% to 4% over the same period. IBM Cloud’s share has declined from 4% to 2%, while the market shares for Salesforce, Oracle Cloud and Tencent have remained stable at 3%, 2% and 2% respectively.

All remaining cloud infrastructure providers had a combined market share of just 20% in Q1 2024, down from 21% in Q4 2021. The entire cloud infrastructure market’s revenue has grown from just over $50 billion to over $76 billion, Finbold estimated.

The consolidation within the cloud services market represents potential cause for concern, Finbold noted, as evidenced by this month’s global IT outage affecting Microsoft devices caused by a faulty CrowdStrike update. It is still too early to determine what impact the incident will have on cloud market trends, the company noted.

But overall demand for cloud services is likely to continue to surge due to factors including the rise of AI, the company said.

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