Cloud Market Share In Q2: Microsoft Drops, Google Gains, AWS Remains Leader

Here’s the global cloud market share results and six world leaders for Q2 2024, which include AWS, Alibaba, Google Cloud, Oracle, Microsoft and Salesforce, according to new market data.

Global cloud market share for the three cloud giants—Microsoft, Google Cloud and AWS—shifted during the second quarter of 2024 as enterprise cloud spending reached a new high of $79 billion.

“In Q2 it was Amazon and Google that nudged their share upwards,” said John Dinsdale, chief analyst at Synergy Research Group in an email to CRN. “Google is bigger than the next four largest players, while Microsoft is twice the size of Google and Amazon is 35 percent bigger than Microsoft.”

Combined, these three tech giants accounted for 67 percent of the entire cloud services market in Q2 2024 on a worldwide basis, according to market share data from IT research firm Synergy.

Before diving into the exact market share figures for the top six cloud leaders during the second quarter of 2024—which include Alibaba, AWS, Google, Microsoft and Salesforce—here’s a look at the current cloud services market on a global basis.

$79 Billion Cloud Services Market In Q2 2024

Enterprise spending on cloud infrastructure services during the second quarter of 2024 reached $79 billion. This represents a $14.1 billion, or 22 percent, increase year over year compared to Q2 2023.

“After seeing growth rates soften a little through much of 2023, this is the third consecutive quarter in which the year-on-year growth rate was 20 percent or more, with generative AI being one of the factors behind the market acceleration,” Dinsdale said.

While some economic, currency and political headwinds remain, Dinsdale said the strength of the market continues to push spending on cloud services to new highs.

“It has taken 13 quarters for the market to double from $40 billion, and Synergy forecasts show that it will double again within the next four years,” he said.

CRN breaks down the leading cloud companies and global market share figures for AWS, Alibaba, Google Cloud, Microsoft Azure and Salesforce for second quarter 2024.

No. 5 (Tied): Oracle

Q2 2024 Market Share: 3%

Q1 2024 Market Share: 2%

Q2 2023 Market Share: 2%

Cracking into the top six cloud market leadership list during Q2 2024 was Oracle, who tied for fifth place in the cloud service market rankings.

The Austin, Texas-based software and cloud specialist won 3 percent global share of the cloud market during the second quarter of 2024.

“Oracle surpassed IBM this quarter and is now tied with Salesforce as the fifth largest cloud provider,” said Dinsdale. “Oracle is now starting to separate itself to become a top five player.”

No. 5 (Tied): Salesforce

Q2 2024 Market Share: 3%

Q1 2024 Market Share: 3%

Q2 2023 Market Share: 3%

Salesforce tied for fifth place in the worldwide cloud market during the second quarter by winning 3 percent share.

The San Francisco-based cloud and CRM specialist has consistently captured around 3 percent share of the global cloud market for the past several years.

No. 4: Alibaba

Q2 2024 Market Share: 4%

Q1 2024 Market Share: 4%

Q2 2023 Market Share: 4%

Alibaba subsidiary, Alibaba Cloud, is one of the most popular cloud companies in Asia. The Chinese tech giant won 4 percent share of the global cloud services market in Q2 2024.

Alibaba has constantly been ranked No. 4 in the rankings for the past several quarters, typically owning between 4 percent to 6 percent of the global market share.

No. 3: Google (Google Cloud)

Q2 2024 Market Share: 12%

Q1 2024 Market Share: 11%

Q2 2023 Market Share: 11%

Google Cloud increased its global market share by one point in Q2 2024 both on a year over year and quarter over quarter basis.

Google’s cloud business won a record 12 percent share of the global cloud services market during the second quarter.

Google Cloud generated a total of $10.3 billion in sales during Q2 2024, representing a 29 percent year over year growth rate. Google Cloud now has an annual run rate of more than $41 billion.

No. 2: Microsoft

Q2 2024 Market Share: 23%

Q1 2024 Market Share: 25%

Q2 2023 Market Share: 22%

Microsoft’s cloud market share saw a two-point share drop during the second quarter of 2024 compared to just one quarter ago.

The largest software company in the world captured 23 percent share of the cloud services market in Q2 2024. This is down two points compared to the record 25 percent market share it achieve during Q1 2024.

Microsoft Azure revenue is included in the company’s Intelligent Cloud group, which generated a total of $28.5 billion in revenue during Q2 2024, up 19 percent year over year. Microsoft’s Intelligent Cloud group now has an annual run rate of $114 billion.

No. 1: Amazon (AWS)

Q2 2024 Market Share: 32%

Q1 2024 Market Share: 31%

Q2 2023 Market Share: 32%

AWS remains the dominant worldwide cloud services market leader as of Q2 2024 by winning 32 percent share.

Amazon Web Services has captured between 31 percent to 34 percent share of the global market over the past several years.

AWS generated $26.3 billion in total revenue during second quarter 2024, representing an increase of 19 percent year over year. AWS now has an annual run rate of over $105 billion.

Other Top Cloud Market Leaders

IBM Market Share Q1 2024: 2%

Tencent Market Share Q1 2024: 2%

Huawei Market Share Q1 2024: 2%

IBM, Tencent and Huawei each won around 2 percent share of the global cloud market.

Other companies who captured approximately 1 percent share of the cloud market include Baidu, China Telecom, China Unicom, Fujitsu, NTT, Snowflake, SAP, Rackspace and VMware.

Among the tier-two cloud providers, those with the highest year over year growth rates were Oracle, Huawei, Snowflake and MongoDB.