Amazon.com Inc maintained its dominant position last year in the cloud infrastructure market that is worth billions, even as its share shrunk in the category that is growing fast, according to research firm Gartner.
What happened:In 2020, Amazon held a market share of about 41% in the infrastructure as a service (IaaS) category, slipping from 44.6% in 2019.
In comparison, all top-four rivals in the cloud infrastructure space, namely Microsoft Corp,Alibaba Group Holding, Google-parentAlphabet Inc and Huawei grew their market share in the year.
Why It Matters:It's worth noting Amazon’s revenue of $26.2 billion from cloud infrastructure is still more than double that of the No. 2 player Microsoft’s $12.65 billion.
Alibaba, at the third spot, generated $6.12 billion in cloud infrastructure revenue, while Google and Huawei churned $3.93 billion and $2.67 billion, respectively.
As per the report, the IaaS category itself grew 40.7% in 2020 to $64.3 billion as reliance on adopting cloud infrastructure boomed during the pandemic.
Tech giants are seeing increasing competition in the cloud computing space and it is quickly turning out to be a key profit driver as corporates and businesses rush to support employees working from home during the pandemic.
Price Action:Amazon shares closed 1.25% higher at $3,443.89 on Monday.