Today, the three major cloud computing service providers occupy 66% global market share. Amazon, Microsoft and Google generate billions of dollars in revenue from their cloud infrastructure, which provides companies with the computing power they need to store data. What’s more, most AI models run in the cloud, causing cloud providers’ computing demands to surge.
Major cloud service providers and their market shares
- Amazon Web Services (AWS)
- market share:31%
- quarterly revenue: US$24.2 billion
- Growth: AWS is Amazon's main cash engine, but growth will slow in 2023 as enterprises and startups cut spending on technology. Compared with the same period last year, annual sales increased by 13%, which is much lower than competitors Microsoft and Google.
- MicrosoftAzure
- market share:20%
- Growth: Microsoft's cloud division has an annual growth rate of 30%.
- Google Cloud
- market share:15%
- Growth: Google’s cloud division has an annual growth rate of 26%.
Chinese cloud service provider
- Alibaba Cloud
- market share:4%
- Tencent Cloud
- market share:1%
Alibaba Cloud and Tencent Cloud together occupy 5% market share globally.
The connection between artificial intelligence and cloud services
Given that a large portion of AI models are run in the cloud, the industry is likely to see greater demand as momentum accelerates. In fact, newer AI systems are 10 to 100 times larger than older models. In line with this, major cloud providers are seeing huge demand for cloud services to allow companies from finance to manufacturing to run large language models on their platforms.
Popularization of cloud services
Today, 98% companies around the world rely on the cloud for at least some of their business applications, and as artificial intelligence continues to advance, this may bring market opportunities to the industry.
From the distribution of cloud service providers, we can also indirectly see the shadow of the distribution of the artificial intelligence industry. U.S. companies hold the lion's share of the market, while Chinese cloud service providers are also emerging rapidly.
These data show that cloud services are not only the infrastructure of the modern digital economy, but also a key force in promoting the development of artificial intelligence and other high-tech industries. With the advancement of technology and the expansion of applications, the market demand for cloud services will continue to grow, bringing more innovation and opportunities to various industries around the world.
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