Amazon Web Services (AWS) remained the largest infrastructure-as-a-service (IaaS) provider in 2020, though its overall dominance dropped as rivals Microsoft, Alibaba, Google, and Huawei ate into its share of the growing market. 

According to Gartner’s latest IaaS market analysis, AWS generated $26.2 billion in revenues last year, which accounted for 40.8% of the market. While AWS’ IaaS revenues increased nearly 29% year over year, it’s market share dropped from 44.6% in 2019. 

Microsoft took the biggest bite out of AWS’ lead, with the No. 2 vendor growing its market share from 17.4% in 2019 to 19.7% last year. The vendor’s IaaS revenue growth surged more than 59% to $12.7 billion in 2020.

Although Alibaba’s 9.5% market share only increased 0.7% from 2019 to 2020, the vendor’s overall growth totaled 52.8% as its IaaS revenue grew by more than $2 billion.

Google follows Alibaba as the No. 4 IaaS provider with a 6.1% market share. In 2020, Google earned $4 billion in revenue, a 66% increase from 2019. 

Huawei’s 2020 market share totaled 4.2%, placing it in the No. 5 spot. The Chinese vendor showed the largest overall growth with an increase of more than 200% from 2019 to 2020. Its IaaS revenue totaled almost $2.7 billion. 

Although Amazon’s market share decreased, its revenue increased by nearly $6 billion, reflecting the company’s increased customer usage. Following Amazon’s lead, almost 90% of all IaaS providers took in more revenue in 2020 than in 2019.

Amazon’s lead above other IaaS providers is substantial. Of the top five, Amazon still holds a larger market share than Microsoft, Alibaba, Google, and Huawei combined.  

As the top five IaaS companies grow, smaller providers feel that change. All IaaS companies smaller than the top five are listed as “Others” in Gartner’s data, and although revenue for this group of smaller providers increased by around $2.5 billion, market share decreased 2.3%, showing the expansion of the top five IaaS providers.

“Hyperscale providers are continuing to build distributed cloud and edge solutions that extend the public cloud’s reach into private and on-premise locations, addressing the needs of organizations relating to data sovereignty, workload portability and network latency,” said Sid Nag, VP of research at Gartner, in a statement. “This fact, coupled with reliance on the public cloud by a majority of organizations during the pandemic, drove another year of double digital market growth in 2020.”