AWS and Microsoft duopoly continues to push native cloud IaaS out of the market
By 2019, Gartner said it predicts 90 per cent of native cloud IaaS providers will be forced out of the entirely market by Amazon Web Services (AWS) and Microsoft.
Over the last four years, the public cloud IaaS market has begun to develop two dominant leaders - AWS and Microsoft Azure.
Between them, they not only have many times the compute power of all other players, but they are also investing in "innovative service" and pricing offerings that others cannot match, the analyst firm said.
However, Gartner added it is only in new markets that the dominance of AWS and Microsoft will be challenged by businesses such as Aliyun, the cloud service arm of Alibaba, which is the top player in China.
"The competition between AWS and Azure in the IaaS market will benefit sourcing executives in the short to medium term but may be of concern in the longer term," said Gartner research director, David Groombridge.
"Lack of substantial competition for two key providers could lead to an uncompetitive market. This could see organisations locked into one platform by dependence on proprietary capabilities and potentially exposed to substantial price increases."
Gartner's prediction comes off the back of AWS unveiling its latest investment plans during the AWS Partner Summit in Sydney, detailing that the cloud vendor intends on focusing especially on hybrid IT.
McNaught suggested that hybrid options remain an essential option for many of its customers, in particular its larger enterprise and government customers that are not necessarily cloud native.
"Will continue to invest in this and invest in partners who support hybrid options, around hybrid IT, on-premise and in AWS cloud," he said.
"We'll continue to invest as customers need these hybrid options. But we do believe in the fullness of time, that customers will not have the need to manage their own ICT services, but will deliver their services from public cloud, and as that journey happens, hybrid options are important to us."
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