Microsoft grew fastest among peers in 2015
Previously in this series, we discussed Microsoft’s (MSFT) recently announced acquisitions in the mobile app and cloud space. But it’s impossible for the cloud space to be mentioned without bringing Amazon’s name into the discussion.
Defying the market predictions and industry analysts’ opinions, Amazon.com (AMZN) continues to stand tall in the overall cloud space. According to Synergy Research Group, Amazon commanded close to 31% of market share of overall cloud space in 2015. Despite this, Microsoft grew the most in the cloud in 2015—by 124% on a YoY (year-over-year) basis in 4Q15. By comparison, Google’s (GOOG) Cloud Platform recorded a 108% growth, and Amazon’s AWS grew 63% in 4Q15.
Top four players dominate the cloud space
As the above chart shows, Microsoft and Google grew the most among peers in 4Q15, whereas IBM continues to lead the private and hybrid cloud space. According to Synergy Research, the top four tech players exceeded the market growth as a whole and collectively accounted for about half of the global cloud space.
According to John Dinsdale, Chief Analyst and Research Director at Synergy Research Group, “The big four cloud operators are continuing to run away with the market.” This explains why Microsoft and IBM are so hungry for buyouts in the cloud space.
The iShares Russell 1000 Growth ETF (IWF) has ~50% exposure to large-cap information technology stocks, including a 2.3% exposure in AMZN.
Now let’s jump to Oracle’s latest acquisition on this front: Ravello Systems.