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Oracle Grew the Most in the Platform-as-a-Service Space

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Oracle grew the most among PaaS vendors

In the previous article, we discussed the market’s expectations for Oracle’s (ORCL) fiscal fourth quarter. We also discussed Oracle’s cloud offerings growth in the fiscal third quarter.

Last month, Oracle announced that its cloud offerings growth and momentum had been recognized by the International Data Corporation (or IDC). According to the IDC’s Public Cloud Services Tracker for April, among its peers, Oracle grew the most and consequently gained the most market share among all enterprise application SaaS (software-as-a-service) vendors in 2017 as well as 2016. Moreover, Oracle grew the fastest among the top ten PaaS (platform-as-a-service) vendors in 2017 as well as 2016.

Oracle is way behind its peers in the IaaS/PaaS space

The above chart, taken from a 2018 study done by Jefferies & Company and cited by Lightreading, shows IaaS (infrastructure as a service) and PaaS estimates, which are part of the overall cloud market share. It does not include SaaS estimates, which include Microsoft’s (MSFT) Office 365 and Oracle’s SaaS offerings.

Like the public cloud space, the IaaS/PaaS space is also dominated by Amazon’s (AMZN) AWS (Amazon Web Services), which has a 34% market share. It has $20.5 billion in annualized revenue and is growing at an annual rate of 44%. Microsoft’s Azure has an 11% market share and has grown 98% YoY (year-over-year) to report $6.3 billion in annualized revenue. IBM (IBM), Google (GOOG), and Alibaba (BABA) make up the remainder of the list of the top five players.

With a market share of 3% and YoY growth of 24% that resulted in $1.7 billion in annualized revenue, Oracle placed last among the top players.

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