DevOps Organizations Are Increasingly Turning to Alternate Cloud Providers

A new report on the DevOps industry should be a concern for the top three cloud providers, showing that organizations are increasingly looking for alternate providers....
DevOps Organizations Are Increasingly Turning to Alternate Cloud Providers
Written by Staff

A new report on the DevOps industry should be a concern for the top three cloud providers, showing that organizations are increasingly looking for alternate providers.

AWS, Microsoft Azure, and Google Cloud dominate the industry, accounting for a 71% share of the market. Similarly, the three companies account for 65% of all cloud spending. Nonetheless, it appears some organizations are looking to support smaller, independent rivals.

A new report, commissioned by Linode and conducted by Techstrong Research, shows that despite 93% of respondents using one of the Big Three, two-thirds would consider an alternative.

The largest three hyperscalers (Amazon Web Services, Microsoft Azure, Google Cloud Compute) are used by 93% of respondents. Yet many DevOps buyers are re-thinking a reflex default to these hyperscalers. Two-thirds of companies surveyed would consider bringing in an “alternative” CSP; almost 22% have already done so. In fact, the combined market share for the top alternative vendors is fourth in the category, just behind Microsoft and Google.

Even more troubling for the Big Three is the growing interest in alternative providers, as well as the reasons that interest is growing.

Interest and adoption is highest in small and medium organizations (fewer than 10,000 employees). Main reasons for bringing in a new vendor include reducing reliance on a single provider, improving price performance and ease of use, and better data protection.

Another growing concern is competition from a company’s cloud service provider (CSP). Each of the Big Three are part of larger companies that offer a wide array of products and services, many of which can compete with the products and services of their cloud customers.

More than 50% of DevOps professionals and leaders surveyed say their CSP is already a competitor to their B2B or B2C business or is expected to become one. Fear of IP loss and rapid market displacement is also evidenced in respondent’s strong stated desire to work with a trustworthy, capable provider who shares their company values.

Needless to say, the Big Three hold a commanding position in the market, and it will be a long time before they face a serious challenge. Nonetheless, the report should be a cause for concern and highlights areas where they must improve in order to keep their customers happy.

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