The cloud computing industry in the near future will continue consolidating to the point that four major providers already dominating — Amazon, Microsoft, Google and Alibaba — will combine to own nearly 90 percent of the market.
That’s the latest projection for the cloud market from Goldman Sachs analyst Heather Bellini, who wrote in a recent note to clients that those four cloud titans will collective own around 89 percent of the total market by 2019.
“We believe that share will continue to consolidate around the largest platforms into an oligopolistic market structure,” Bellini wrote in the note, according to Markets Insider.
Amazon Web Services, Microsoft, Google and Alibaba currently combine to make up 65 percent of the cloud market, according to Bellini’s note. But she said more consolidation is on the horizon because those four companies are already positioned with a number of differentiating cloud offerings and the financial backing to keep growing.
AWS has been the definitive cloud market leader but, its competition is growing at a much faster pace.
The Goldman Sachs projections show that, with Microsoft’s market share jumping to 22 percent by 2019 and Google and Alibaba both doubling. At the same time, Amazon’s share is set to reduce from 46 percent to 42 percent by 2019, according to Goldman Sachs.