Cloud infrastructure refers to the hardware and software components such as servers, storage, network, and virtualization software that are needed to support the computing requirements of a cloud computing model. Cloud computing is a technological innovation for storing data and performing computation. It is an on-demand Network Access to shared computing resources. The companies working in this domain offer three kinds of services-Software as a service (SaaS), Platform as a service (PaaS), and Infrastructure as a service (IaaS).

Infrastructure as a service (IaaS) offers all computing resources but in a virtual environment so that it can be used by multiple users. These services include data storage, virtualization, servers, and networking. The vendors are expected to manage these services and the user is expected to manage data and applications. System Administrators form the largest customer base of IaaS. Organizations make use of cloud infrastructure to take help of cloud computing to perform their day-to-day work to continue their operations i.e. they use Cloud infrastructure provided by the service provider to develop their own programs and software. Infrastructure services are typically accessed using a pay-per-use model.

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Market Dynamics

The main driving forces for the rapid growth of this industry are increasing expense as well as increasing necessity of ICT and Big Data analytics in today’s world. Also, the kind of flexibility cloud infrastructure offers in terms of data accessibility and on-demand business scalability is driving the use of cloud infrastructure as a popular choice amongst organizations.However, the complexity of these infrastructure systems such as, issues in data security and limited control of cloud resources are the major restraining factors to the growth of global cloud infrastructure market.

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Segment Analysis

The growth in the segment is mainly due to its architecture that gives companies the flexibility to use private clouds for some software tools and public clouds for others depending on their needs. Leading cloud vendors are focusing on improving their presence in hybrid cloud space; for instance, in October 2018, IBM acquired Red Hat in order to gain its extensive cloud portfolio.In Public cloud infrastructure segment, the market is dominated by AWS and Rackspace. The demand for public infrastructure is high especially in Customer Relationship Management, emails, Human resource management, and Accounting. Whereas the demand for private cloud infrastructure is primarily seen from big data analytics firms. AWS’s Amazon EMR, Microsoft Azure's HDInsights, Google’s BigQuery are a few prominent players in private cloud infrastructure globally.

Competitive Landscape

The current major players who have captured the major market share are AWS (Amazon Web Services), Hewlett-Packard, Cisco Systems, Google cloud, Microsoft Azure, Intel Corporation, Foxconn Technology Group, Quanta Computer Inc., Dell Inc., Rackspace, Amongst these, Amazon Web Services has the highest market share followed by, Google cloud and Microsoft Azure next in line. The competitive strategy that is being used by AWS, Google Cloud, and Microsoft Azure to maintain their market position is by the deployment of "multi-cloud" infrastructure.

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