Amazon, Terremark top Gartner's list of leading IaaS vendors

Firm predicts IaaS market to grow 42 percent annually to 2016

Orlando, Fla.-- Amazon Web Services (Nasdaq: AMZN) and Verizon's (NYSE: VZ) Terremark are the top vendors in the infrastructure as a service (IaaS) market, according to Lydia Leong, research vice president for cloud computing at Gartner.

Amazon Web Services has expanded its IaaS offerings for enterprises and improved its quality of service, explained Leong, who is an author of Gartner's IaaS magic quadrant report, along with Gartner analysts Douglas Toombs, Bob Gill, Gregor Petri and Tiny Haynes.

"Out of all the customers we've talked to, Amazon customers are the most satisfied," she said.

Other leaders in the market include Savvis, CSC (NYSE: CSC) and Dimension Data, Leong told an audience Monday at the Gartner Symposium ITxpo 2012 being held here.

Companies identified by Gartner as visionaries are Tier 3, Rackspace (NYSE: RAX) and Virtustream; challengers are Joyent, Bluelock and GoGrid; and niche players are SoftLayer, OVH, Fujitsu and Dell (Nasdaq: DELL).

For its magic quadrant reports, Gartner evaluates vendors based on their ability to execute and their completeness of vision.

The market for IaaS, which Gartner describes as a virtual data center of compute, storage and network resources delivered as a service, is still maturing, according to the report.

"We consider infrastructure as a service to be a highly automated and standardized offering. By highly automated, we mean you should be able to push a button and simply get infrastructure without human intervention," Leong explained.

According to a report by Forbes, a number of companies were dropped from this year's report: AT&T (NYSE: T), Carpathia Hosting, Datapipe,, IBM (NYSE: IBM), iland, NaviSite, Tata Communications and Virtacore Systems.

"We dropped several vendors from this Magic Quadrant because we changed the inclusion criteria to limit the evaluation to the top 15 vendors by market share, rather than using a minimum amount of revenue; this reduced the number of included vendors from 20 to 15," according to an excerpt from the Gartner report quoted by Forbes.

According to Gartner estimates, the IaaS market is predicted to grow at a 42 percent compound annual growth rate to 2016, the highest growth rate of any of the cloud segments tracked by the research firm.

The opportunities are there for IaaS vendors. Startups that can offer innovative IaaS products to enterprise customers could steal market share from big players like Amazon, so the time to act is now.

For more:
- check out the Forbes article

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