Cloud Market Share Q4 2022: Microsoft Gains On AWS As Google Grows

The market share numbers are in. CRN breaks down the top five worldwide cloud leaders—AWS, Microsoft, Google and more—according to new fourth quarter 2022 data from Synergy Research Group.

Microsoft gained share on its cloud rival Amazon Web Services during the fourth quarter of 2022, while Google also won more global cloud market share as both IBM’s and Alibaba’s share dipped.

This is according to new data from IT research firm Synergy Research Group, which shows enterprise spending on cloud infrastructure services in the fourth quarter of 2022 reached $61.6 billion. This represents a spending increase of 21 percent year over year, or about $10 billion more than fourth quarter 2021.

“Microsoft in particular had a strong quarter,” John Dinsdale, chief analyst at Synergy Research, told CRN in an email. “Narrowing the gap between it and market leader Amazon.”

Cloud Market In Q4 2022

Before jumping into the exact cloud market share for AWS, Microsoft, Google, Alibaba and IBM, it’s key to note that Synergy’s data shows that cloud services spending has slowed down a bit compared to previous quarters.

The 21 percent year-over-year growth rate in fourth quarter 2022, for example, fails to come close to the 36 percent year over year growth rate in cloud services witnessed during the fourth quarter of 2021.

Dinsdale attributes the reduction in cloud services spending in fourth quarter 2022 on three main reasons.

“The strengthened U.S. dollar diminishes the apparent growth rate of many non-US markets; the large Chinese market remains constrained by pandemic issues and local policies; and the worsened economy has caused some enterprises to more closely review spending on cloud services,” said Dinsdale.

However, he says these factors should be short term in nature and Synergy forecasts that “growth rates will remain strong” over the next several years.

For the entire 2022, enterprise cloud service spending reached $227 billion, an increase of $47 billion compared to 2021.

With AWS, Microsoft and Google Cloud recently reporting their quarterly financial earnings, Synergy’s data on worldwide cloud spending on Infrastructure as-a-Service (IaaS), Platform as-a-Service (PaaS), and hosted private cloud services shines a clear spotlight on the three cloud market share leaders.

Here are the cloud market share numbers for the top five leaders: AWS, Alibaba, Google, IBM and Microsoft.

No. 5: IBM

Market Share Q4 2022: 3%

Market Share Q4 2021: 4%

IBM ranks No. 5 in terms of worldwide enterprise spending on cloud infrastructure services.

The Armonk, N.Y.-based technology conglomerate won 3 percent of the global market, down from 4 percent share year over year.

IBM’s cloud services market share has been slowly declining year after year, according to Synergy Research data. The company won approximately 8 percent cloud share in the fourth quarter of 2017 but IBM’s share has slightly fallen each quarter to now 3 percent share. It is key to note that IBM spun off its managed infrastructure services business to Kyndryl in 2021.

No. 4: Alibaba

Market Share Q4 2022: 5%

Market Share Q4 2021: 6%

China’s leading cloud provider, Alibaba, was able to capture 5 percent cloud market share during the fourth quarter of 2022.

This represents a decline of 1-point compared to its 6 percent market share in fourth quarter 2021.

The Chinese-based company, owner of Alibaba Cloud, has remained basically flat over the based five years in terms of global cloud services market share, according to data from Synergy. For example, Alibaba won approximately 5 percent share of the market in fourth quarter 2018.

No. 3: Google (Google Cloud)

Market Share Q4 2022: 11%

Market Share Q4 2021: 10%

Google ranks third in market share by winning 11 percent share in the fourth quarter of 2022.

Google’s cloud business, Google Cloud, helped the company increase its share to 11 percent in the fourth quarter 2022 compared to 10 percent share in fourth quarter 2021.

The Mountain View, Calif.-based technology giant has been steadily increasing its global cloud market share over the past five years as it entered the cloud market later than its main rivals AWS and Microsoft. Over the past five years, Google’s cloud market share has nearly doubled from 6 percent share in fourth quarter 2017 to now 11 percent share.

No. 2: Microsoft

Market Share Q4 2022: 23%

Market Share Q4 2021: 21%

Microsoft had one of the most successful cloud market share gains in recent years by winning 23 percent share on a worldwide basis.

“Microsoft saw a strong uptick in its worldwide market share which has now reached 23 percent [share], compared to an average 21 percent [share] in the previous four quarters,” said Dinsdale.

The Redmond, Wash.-based software and cloud giant is closing the gap against Microsoft’s main cloud competitor Amazon Web Services. In fourth quarter 2018, Microsoft only had roughly 15 percent market share compared to now 23 percent share, according to Synergy’s cloud market data.

No. 1: Amazon (AWS)

Market Share Q4 2022: 33%

Market Share Q4 2021: 33%

Amazon is still the dominant cloud market share leader thanks to its AWS cloud business—winning one-third of the total global market during fourth quarter 2022.

The Seattle-based company has been the worldwide cloud leader by a significant margin for years. However, AWS’ global market share has remained relatively flat over the past five years, according to Synergy cloud market data.

For example, AWS market share has hovered between 32 percent share to 34 percent share over the last five years, while AWS’ 33 percent market share in fourth quarter 2022 represents flat share growth year over year.

In aggregate, AWS, Microsoft and Google accounted for 66 percent of the worldwide market in fourth quarter 2022, up 3 points compared to 63 percent share one year ago.