landscape

Cloud On-Ramps

The cloud infrastructure services market is projected to grow by 46% this year, reaching $55.8 billion. In turn, the data center industry is seeing a rise in enterprise customers demanding private, direct connections to the major cloud providers via colocation data centers.

Cloudscene has collated data for eight cloud service providers including: Amazon Web Services, Microsoft Azure, Google Cloud, IBM Softlayer, Oracle Cloud, VMWare, Alibaba Cloud and Rackspace to provide a comprehensive look into the connections these cloud players offer within global data centers.

Of the 187 cloud on-ramps listed globally, AWS accounts for 32% with a total of 59 direct connections. Google Cloud holds a 21% share and is followed by IBM SoftLayer and Microsoft Azure both with 16% respectively. The share of direct connections is presented in detail for the Americas, Europe and Asia Pacific in a recent blog post.

Market Update - Q1, 2017

Cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) are expected to exceed 40% growth each quarter according to recent data from Synergy Research Group.

Despite the AWS market share remaining strong at 33%, five of its competitors grew considerably faster in Q1, 2017.

In fact, Microsoft, Google and Alibaba are boasting annual growth rates of 80% or more for the period whilst AWS growth was reportedly slower than previous quarters.

Growth percentages aside, the magnitude of AWS’ revenue cannot be overlooked with $3.66 billion reported in first quarter sales (more than Microsoft, Google, IBM, Alibaba and Oracle combined) resulting in a stock climb of 4.7% within hours of the earnings call.



Google Cloud Google Cloud is Alphabet's cloud computing business and one of the company's fastest-growing lines of revenue, outpacing its advertising business. In a bid to take on market leader, Amazon, Google has invested heavily in the cloud, to the tune of $30 billion. Despite being a latecomer to the cloud market, the company has gone as far as to say that Google Cloud could surpass Amazon as the market leader by 2022. The company is also expanding into several new regions in 2017 to grow its global footprint which currently includes availability zones in just the United States, Belgium, Singapore, Taiwan and Japan. New availability zones in Germany, Finland, the United Kingdom, Canada, India, the Netherlands and Australia are expected to go live this year. It's difficult to get a clear picture of Google's cloud-based revenue given the company doesn't separate the cloud from revenue for hardware and Google Play. The "Other" segment was reported in the Q1, 2017 earnings call as $3.1 billion which was up by 49% compared to the same time last year. Google’s ad revenue rose just 19% for the quarter. Despite the growth, Google Cloud's revenue is still dwarfed by AWS and has been estimated by the RBC to be achieving an annual run-rate revenue of approximately $1 billion - less than what AWS achieves in one quarter. The company has however, made a number of big customer gains in 2017 with HSBC and SAP announced as new users for Google's public cloud platform. Google also offers enterprise-grade connectivity options via its Cloud Interconnect solution that connects customer infrastructure to Google via its service providers. Offering higher availability and lower latency connections, Cloud Interconnect links can be used to access any Google Cloud Platform resource such as Google Compute Engine, Google Cloud Storage and Google BigQuery.

Top 5 Operators
with the most direct connections

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