Amazon's Web Services, Microsoft's Azure, Alphabet's Google Cloud platforms and Alibaba will together make up 65% of cloud market share in 2017, Heather Bellini, an analyst at Goldman Sachs, wrote in a note to clients. She sees even more consolidation in the cloud platform business in the future, bringing the collective market share to around 89% by 2019.
"We believe that share will continue to consolidate around the largest platforms into an oligopolistic market structure," Bellini wrote in a note. She believes in a consolidation because the aforementioned companies are able to provide differentiated, value-added services that draw consumers to their platforms, as well as make significant capital investments in the short term.
Amazon's cloud leads the pack in terms of sales, bringing in $15.9 billion, while Microsoft, Google, and Alibaba have brought in $5 billion, $1.9 billion and $1.4 billion, respectively. While Amazon's year-over-year cloud sales growth rate was a respectable 43%, the other big three companies have expanded even more rapidly: Microsoft's sales were up 92% year-over-year, Alibaba's were up 97%, and Google's were up a whopping 158%.
Amazon Web Services has proven to be a cash cow for the company, boosting its financials as the rest of the company runs a deficit.
Amazon's stock is trading at $1,169.27 per share, and is up 54.97% for the year. Microsoft is at $85.85 per share, and is up 37.17%, Alibaba is at $175.32 per share and is up 97.53% over the year, and Google is at $1,051.59 per share and is up 30.31% a year.