Global cloud wars see AWS increasingly under threat from Microsoft and Google

• AWS, Microsoft Azure and Google Cloud occupy more of the cloud market than before
• Analysts claim AWS position is slowly dropping, Microsoft and Google climbing
• Annual growth will continue at 20-25% for five years

New Synergy Research figures have claimed around 60% growth in the global cloud infrastructure services market over two years, with spend reaching $107 billion in the first quarter of 2025.

The data also reveals the growing dominance of the big three providers – AWS, Microsoft Azure and Google Cloud - now hold a combined 63% of the market, up from 62% in 2024 and 61% in 2023.

However, despite being the biggest of the three, Amazon’s position has been declining steadily since the second quarter of 2022, and it could just be time separating it from first spot with both Microsoft and Google on the rise.

AWS could be on track to drop a position in the cloud market

The three companies drew attention to AI’s impacts on cloud growth.

Though still a long way behind AWS (29%) in terms of market share, Microsoft Azure (20%) has shown a generally consistent upward trend. Google (13%), further behind still, has also been growing steadily. It’s now approaching 4x the size of Alibaba, which resides in fourth place.

“Its share is showing gradual erosion as Microsoft and Google continue to close the gap, yet it remains striking how effectively Amazon has maintained its leadership position,” Chief Analyst John Dinsdale explained.

Looking ahead, Synergy anticipates the average annual growth rate in cloud revenues to remain above 20% for the next five years. Last quarter, they stood at around 25%.

In the three months ending September 30 2025, AWS saw a 20% year-over-year increase in revenue to $33 billion. Microsoft trumped Amazon in the same three months, with a 26% rise in revenue to $49.1 billion. Though smaller, at $15.2 billion, Google Cloud saw the biggest rise of the three, at a staggering 34%.

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