Three of the largest Cloud computing service providers have made up 66% of the total revenue in the global market. The three of the biggest cloud computing service providers are Amazon, Microsoft and Google. These three providers have generated billions of dollars only because of their reliable clouds that help many big companies store their data. Moreover, many AI models have also been running on clouds that has increased the demand of cloud service providers.

According to Synergy Research Group, the biggest cloud service provider is Amazon Web Services with 31% of the total market share. Microsoft Azure is in second place and has 24% of the total market share. 11% of the market shares are taken by Google Cloud. All three of these service providers are based in the USA. Fourth place is taken by China’s Alibaba Cloud with 4% market shares. Salesforce has 3% shares of the total market shares. IBM Cloud, Oracle and Tencent Cloud, all have 2% market shares each. The remaining 21% of the market shares are from other cloud service providers.

With 31% of the market shares, Amazon Web Services have generated $24.3 billion revenue in Q4 of 2023. The annual sales growth of Amazon has increased by 13% from Q4 of 2022. Microsoft’s sales increased by 30% and Google’s sales increased by 26% as compared to in Q4 of 2022. As it is quite prominent, USA companies have taken over the cloud service market and China makes up 5% of the total market shares.

As AI is running on clouds, it is expected that the market for cloud service providers will be in more demand in the coming years. About 98% of the companies in the world rely on cloud for their data so as AI will incorporate itself in these companies, demand for cloud will grow.

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