Hybrid infrastructure services are progressing, because of the cloud and industrialised services growing, and data centre outsourcing (DCO) declining, according to Gartner, Inc.

The public cloud IaaS market has grown significantly since they invested in innovative service and pricing offerings that others cannot match, with help from the development of two dominant leaders – AWS and Microsoft Azure.

Since then, IT infrastructure service reports carried out by Gartner, Inc. have predicted that that by 2019, 90% of native cloud IaaS providers will be forced out of the market by Amazon Web Services, and by 2020, 90% of organisations will adopt hybrid infrastructure management capabilities and data centre, with relevant IaaS prices continuing to decline by at least 10% per year.

Competition between IaaS market providers

“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 David Groombridge, Research Director at Gartner.

“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.”

According to Gartner, it is only in new markets that the dominance of AWS and Microsoft will be challenged by businesses.

Written from press release by Leah Alger