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How Much of the Hosting and Colocation Market is Dominated by Amazon AWS?

Posted by QuoteColo on February 08, 2020 - Updated on January 14, 2022

How Much of the Hosting and Colocation Market is Dominated by Amazon AWS?

Amazon is a powerful company that is dominating many different fields. It’s far more than just an online retail giant. It is also the largest provider of hosting and colocation services in the world. The company has become very closely associated with the cloud, and they continue to grow and become even more influential in this field.

A recent report found that the market share for AWS is currently the largest in the field at 47%. The only competition that comes close to that is Azure from Microsoft, which accounts for 22% of the market share. This means that between these two companies, they control 69% of the market share. All of the other hosting and colocation data centers combined account for 31%.

It’s also important to have an understanding of the revenue that Amazon AWS is able to provide. In the first quarter of 2019, they had sales of $7.7 billion, which has grown from previous years. In 2018, AWS had revenue of $25.7 billion, or $6.42 billion per quarter.

Why Is Amazon AWS So Dominant?

Currently, there are 66 availability zones across 21 geographic regions in the world. The number of data centers located in each of these zones varies. It could be as low as one or up to a dozen. The company continues to grow, and it is quite likely that there will be even more of these data centers being created around the world in the coming years. The fact that there are such a large number of them is one of the reasons that Amazon AWS is doing as well as it is. However, it is certainly not the only reason.

You have to keep in mind that Amazon is a massive brand and a household name. It is as ubiquitous as McDonald’s or Starbucks. When many people are looking for hosting and colocation services, they want to stick with a brand that they know and trust. This is why Amazon is in the top spot and it is why Microsoft Azure is in the second spot. Brand recognition really does play a huge role.

Of course, it isn’t only about branding. There is also the fact that AWS can provide a large number of AWS alternatives for its customers. There are more than 170 services they provide to their customers, including network and content delivery, analytics options, application integration, and much more. Those who use Amazon AWS are getting a large suite of options and services that can often be difficult for smaller hosting and colocation companies to provide.

There is no doubt that AWS will continue to dominate the market and will likely continue to keep on growing and adding even more services. The smaller companies that are trying to carve out their own space in these fields still have opportunities. They will want to find ways to continue to offer high-quality services while highlighting what makes them unique and a better choice for a customer than choosing a big company like Amazon.





Categories: Amazon AWS

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