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Amazon Web Services Market Share Decline
Amazon Web Services (AWS) has seen its market share drop to 29%, a multiyear low from a peak of nearly 35% in 2019. This decline has been notable since 2023 and is primarily attributed to competition from smaller, specialized cloud service providers, termed “neoclouds,” which cater to artificial intelligence data center needs.
Research from Synergy Research Group highlighted that while AWS remains operationally profitable, it is losing ground to smaller players such as CoreWeave and DigitalOcean, the latter achieving $230 million in revenue during the last quarter, a 16% year-over-year growth. Analysts predict that the neocloud segment could grow from $23 billion in revenue this year to nearly $180 billion by 2030.
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