Nearly $600B ☁️ cloud market is largely built with partnerships as building blocks.. Here is a quick breakdown from infrastructure to added products/services, all the way to 💻 the end business customers
⚡️ Infrastructure as a service (IaaS) - $91B in global revenue, 36% YoY growth
It starts with cloud hyperscalers (Amazon Web Services (AWS), Microsoft, Google) that provide access to raw computing to process workloads, store data, manage access, networking (e.g. firewall), virtualisation, etc.
🛠️ #Platform as a service (PaaS) $68B, 39% YoY growth
To accelerate development and mgmt of full applications, you need enhanced computing, pre-built app components and tools. This layer includes data mgmt, analytics, AI/ML, IoT, etc.
🎯 #SaaS - Applications $178B, 24% YoY growth
Finally we have complete apps on the cloud. Could be offered by hyperscalers or independent vendors.
Interestingly, a third of the SaaS apps market is occupied by Microsoft, Salesforce, SAP, Oracle and Google, with the remaining 68% being the long tail of products, some of which, like Dropbox, we use daily.
Other market players:
🗽 Independent software vendors
Companies building SaaS (or PaaS) apps/services. Typically do not own the underlying compute resources. ISVs may complement the services of vertically integrated cloud providers, including hyperscalers, and/or directly compete with them.
But if you think that hyperscalers will disrupt SaaS - maybe, but not yet. Hyperscalers rev share in the SaaS market was <18% in ‘21.
🛎️ Professional services organizations
They support the process of using the cloud, focusing on customers with complex IT needs. Help to create cloud strategy, choose providers, implement and manage services.
Resellers who resell services from cloud providers.
Service integrators (SIs)
Offer services from various cloud providers, e.g. via an online portal that acts as a one-stop-shop for customers.
Consultants (e,g. Capgemini, Deloitte)
Advise businesses on their cloud use, choice of supplier, migration of traditional IT, security, and ongoing management and support
Managed service providers (MSPs)
Provide IT services, such as app development and app management, MSPs may be considered ISVs that only offer services on request as opposed to launching public offerings.
🤝 Cloud #marketplaces
Hyperscalers (AWS, MSFT, GCP) have built marketplaces to sell to their customers alongside their cloud infrastructure.
Why? It’s convenient for customers to buy everything from one place (procurement 💜 it). ISVs get listed and sell to end customers.
While small, this is the fastest growing segment. It’s not only for small companies too, E.g. CrowdStrike is listed on AWS and growing 100% YoY.
Check our case study about them
Sources: IDC 2021 FY, Ofcom