Microsoft, AWS, Google Cloud Market Share Q3 2023 Results

Here are AWS, IBM, Alibaba, Microsoft and Google Cloud’s global cloud market share numbers, according to new data from Synergy Research Group.

Amazon Web Services, Microsoft, IBM, Alibaba and Google captured the most cloud market share during third quarter 2023 as worldwide spending on cloud infrastructure services surpassed $68 billion.

In aggregate, AWS, Microsoft and Google Cloud won a whopping 66 percent share of the worldwide cloud market in Q3 2023 as the three tech giant’s continue to tussle for leadership, according to new data from Synergy Research Group.

Worldwide enterprise cloud infrastructure services spending increased by $10.5 billion year over year in third quarter 2023, representing an 18 percent growth rate. This marks the fifth successive quarter in which the cloud market grew by between $10 billion to $11 billion from the prior year.

“The relative scale of their cloud operations now shows Microsoft being twice the size of Google, with Amazon being almost equal to the other two combined,” said John Dinsdale, chief analyst and managing director at Synergy in an email to CRN.

CRN breaks down the top five cloud market share leaders on a global basis, alongside market share from the prior quarter as well as year over year market share numbers.

Global Cloud Market Impacted By AI

Before jumping into AWS, Microsoft, Google, IBM and Alibaba’s cloud market share, it’s interesting to note that Synergy Research Group cited artificial intelligence, specifically generative AI (GenAI) as a reason why cloud computing growth continues to explode in 2023.

“As an already massive cloud market keeps on growing, the year-on-year growth rate almost inevitably declines,” John Dinsdale, chief analyst and managing director at Synergy, told CRN via email. “But we are now starting to see a stabilization of growth rates, as cloud provider investments in generative AI technology help to further boost enterprise spending on cloud services.”

Dinsdale said it’s still early days for GenAI but the technology “will help to keep cloud growth buoyant over the coming years.”

Here are the top five cloud computing market share leaders as of Q3 2023.

No. 5: IBM

Q3 2023 Market Share: 3 Percent

Q2 2023 Market Share: 3 Percent

Q3 2022 Market Share: 3 Percent

The longtime technology giant won 3 percent share in the global cloud infrastructure services market in Q3 2023. IBM has consistently ranked No. 5 in the cloud rankings by capturing 3 percent share over the past several quarters.

The Armonk, N.Y.-based company reported $14.8 billion in total revenue during its third quarter 2023, representing 5 percent growth year over year.

IBM doesn’t break out its cloud sales figures, but instead includes them inside its Software segment. IBM’s Software segment generated $6.3 billion in revenue in Q3 2023, up 8 percent year over year.

No. 4: Alibaba (Alibaba Cloud)

Q3 2023 Market Share: 4 Percent

Q2 2023 Market Share: 4 Percent

Q3 2022 Market Share: 5 Percent

Alibaba Cloud ranked No. 4 for cloud market share in the third quarter 2023 by winning 4 percent share. The Chinese company holds significant market share, approximately 33 percent, in China and in some parts of Asia.

On a regional level, China’s largest domestic cloud provider bests the likes of Tencent Cloud and Huawei in terms of cloud sales, according to Synergy data. However, the company isn’t a large player in North America and doesn’t compared to AWS, Microsoft and Google on a worldwide level.

Alibaba’s worldwide market share has slightly dipped from around 5 percent share throughout 2022, to around 4 percent share this year.

Alibaba Group is set to report the financial earnings results for its third quarter 2023 on Nov. 16.

No. 3: Google (Google Cloud)

Q3 2023 Market Share: 11 Percent

Q2 2023 Market Share: 11 Percent

Q3 2022 Market Share: 11 Percent

With the hiring of CEO Thomas Kurian in late 2018, Google Cloud has cemented itself over the years as being the world’s third-largest cloud company. Google Cloud continues to be the fastest growing cloud company in the globe in terms of sales percentage, growing revenue by 22 percent year over year in Q3 2023.

The Mountain View, Calif.-based company won 11 percent share of the global cloud infrastructure services market in third quarter 2023. Google Cloud’s market share historically hovered around 9 percent to 10 percent market share over the past few years, but has witnessed a steady 11 percent share victory since 2022.

In Q3 2023, Google Cloud generated $8.4 billion in total revenue, with operating income of $266 million.

No. 2: Microsoft

Q3 2023 Market Share: 23 Percent

Q2 2023 Market Share: 22 Percent

Q3 2022 Market Share: 21 Percent

The world’s largest software company won the silver medal in the cloud market by winning 23 percent share in Q3 2023, as Microsoft continues to improve share. The Redmond, Wash.-based company increased share from 21 percent in Q3 2022 to now 23 percent global share.

Microsoft does not provide to the public its Azure sales figures. Instead, Microsoft combines Azure, server product and other cloud services revenue all under its Microsoft’s Intelligent Cloud umbrella.

In Q3 calendar year 2023, Microsoft Intelligent Cloud group generated $24.3 billion in sales, representing a 19 percent year over year growth rate. The group reported a whopping $11.7 billion in operating income, easily besting both AWS and Google Cloud.

No. 1: Amazon (AWS)

Q3 2023 Market Share: 32 Percent

Q2 2023 Market Share: 32 Percent

Q3 2022 Market Share: 34 Percent

The world’s longtime dominant cloud market share leader won 32 percent share of the global cloud infrastructure services market in Q3 2023 to win the gold medal. AWS share has hovered between 32 percent share and 34 percent share over the past several years.

However, it is key to note that AWS sales growth rate has been lower than Microsoft and Google Cloud as of late. In Q3 2023, AWS generated $23.1 billion in revenue, representing a 12 percent growth rate year over year.

AWS generated operating income of $7 billion in Q3 2023, compared to $5.4 billion year over year. The cloud company is Amazon’s most profitable business.

Other Notable Market Share Companies

Salesforce Q3 2023 Market Share: 3 Percent

Oracle Q3 2023 Market Share: 2 Percent

There is little doubt that AWS, Microsoft and Google Cloud will continue to lead the market by leaps and bounds over the next several quarters and, potentially, years. Although there two companies—Oracle and Salesforce—who are fighting to be in line right behind the big three.

Salesforce has cracked into the top five market share leaders in cloud for the past several quarters. In Q3 2023, Salesforce won 3 percent share of the market, similar to 3 percent share in Q2 2023.

Oracle has consistently generated around 2 percent share in the global cloud infrastructure services market for the past few quarters. In Q3 2023 as well as in Q2 2023, Oracle won 2 percent share of the market.

Other companies who have a market share of 1 percent include Baidu, China Telecom, China Unicom, Huawei, Fujitsu, NTT, Snowflake, SAP, Rackspace and VMware.