Spark NZ continues to beat Amazon in the Kiwi IaaS arena

Spark NZ continues to beat Amazon in the Kiwi IaaS arena

Comes as the overall local IaaS market rose by 20.6 per cent year-on-year to over $450 million.

Credit: Billy Huynh on Unsplash

Spark NZ has once again beaten global tech giant Amazon in terms of both market share and revenue in the local infrastructure-as-a-service (IaaS) public cloud services market for 2020.

In New Zealand, Spark NZ held onto 31.6 per cent market share and saw revenue increase by 13.6 per cent year-on-year to $142 million dollars over the last year, placing it once again as the leader in the local IaaS market. 

This saw it overcome Amazon once again, which held onto 27.3 per cent market share and an IaaS revenue increase of 19.4 per cent to $123 million, according to Gartner. This was followed by Datacom with 16 per cent and an increase of 2.9 per cent to $72 million. 

Credit: Gartner

Spark's continued strength in the local IaaS market comes as the overall market jumped up by 20.6 per cent year-on-year to over $450 million in 2020, with the top three players holding onto nearly 75 per cent of the market share.

Meanwhile, Amazon was in the lead on a global scale with a market share of 40.8 per cent and revenue increasing by 28.7 per cent to hit US$26 billion for 2020.  

That growth increase, which was under the overall market rise of 40.7 per cent year-on-year, was attributed to increased customer usage.  

However, most of the major global players — Microsoft, Google, Alibaba and Huawei — saw their market share rise.

Credit: Gartner

Coming in second place for market share, Microsoft also saw its revenue increase by 59.2 per cent year-on-year to US$12.7 billion. According to Gartner, demand for its solutions stemmed from Azure customers wanting to navigate global healthcare crisis and disruption in workplace environments with mission-critical workload migrations.  

This came in the form of healthcare applications with artificial intelligence-assisted bots, virtual models in manufacturing and e-commerce in retail.  

Meanwhile, Google, which came in fourth place for IaaS market share, experienced revenue growth of 66.1 per cent year-on-year to US$3.9 billion, largely due to spending from the retail, government and healthcare sectors, as well as its focus on developing and deploying cloud applications in hybrid and multi-cloud models.

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