Gartner: Huawei enters in the top five global IaaS public cloud market for the first time

According to the statistics of Gartner, the world’s leading information technology research and consulting company, the global infrastructure-as-a-service (IaaS) market reached US$64.3 billion in 2020, an increase of 40.7% from the US$45.7 billion in 2019. Amazon still ranked first in the IaaS market in 2020, followed by Microsoft, Alibaba, Google, and Huawei.

Sid Nag, vice president of research at Gartner, said: “Hyperscale providers are continuing to expand the coverage of public clouds to private and local locations by building distributed cloud and edge solutions to meet corporate data sovereignty, workload portability, and network latency. This, coupled with the reliance of most enterprises on public clouds during the epidemic, will drive the market to achieve double-digit growth again in 2020.”

In 2020, the top five IaaS providers accounted for 80% of the market share, and nearly 90% of IaaS providers achieved growth.

Amazon continues to lead the global IaaS market, with its 2020 revenue of US$26.2 billion and a market share of 41%. Amazon’s growth rate was 28.7%, slightly lower than the market average, and its sales growth was mainly due to the increase in customer usage.

In 2020, Microsoft will continue to rank second in the Gartner IaaS market share with a growth rate of nearly 60% and revenue of $12.7 billion. The global medical crisis and changes in the working environment during the epidemic have driven current Microsoft Azure customers’ demand for migrating mission-critical workloads, such as medical applications with AI-assisted robots, digital twins in manufacturing, and e-commerce in retail.

Gartner IaaS

Huawei has achieved more than 200% growth in the IaaS market for two consecutive years and entered the top five IaaS vendors for the first time in 2020 with a revenue of US$2.7 billion. More than 90% of its revenue comes from Greater China, where the cloud market continues to grow rapidly. Nag said: “Huawei has shifted from selling equipment to investing heavily in cloud service business after 2019, and this difficult transformation has begun to bear fruit.”

In 2020, Google’s IaaS revenue will increase by 66%, reaching nearly 4 billion U.S. dollars. Retail, government, and medical industry spending and these industries’ focus on the development and deployment of cloud applications in hybrid and multi-cloud models together help drive Google’s IaaS growth in 2020.

“The era when CIOs diversified their investments in cloud IaaS and platform as a service (PaaS) is long gone. Although the cloud market will continue to grow, because CIOs will invest in technologies that can meet their complex and emerging use-case requirements, providers will truly The opportunity for this comes from the growth of technology markets adjacent to the cloud, such as edge, 5G, and AI.”



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