In our recent exploration, we traced the evolution of cloud computing over six decades. However, it was around 2002 that cloud computing as we recognize it today truly began to take shape, driven by Amazon’s quest for a more scalable infrastructure for its burgeoning online marketplace.
It’s therefore no coincidence that Amazon Web Services (AWS), the e-commerce giant’s cloud services arm launched in 2006, currently reigns as the largest Best Cloud Server Provider in the industry.
This guide provides an in-depth look at the cloud infrastructure market, highlights the leading cloud server providers, and offers insights to help you choose the best cloud server provider for your specific requirements.
Understanding Cloud Service Providers
A cloud service provider (CSP) essentially leases out a comprehensive suite of technology, infrastructure, and specialized expertise. This offering empowers businesses and individuals to engage in cloud computing, encompassing services like online data storage, computational resources, and networking capabilities, all accessible via the internet.
These providers maintain and operate numerous data centers across the globe. These facilities house the physical infrastructure essential for cloud computing, including servers, storage systems, and cooling technologies.
Users can tap into this extensive cloud infrastructure from anywhere, at any time. By establishing a connection to these data centers and adopting a pay-as-you-go model, they can procure precisely the amount of computing capacity they need. This usage-based pricing structure is a hallmark of cloud services.
CSPs deliver a range of compelling advantages, making them an attractive option for many organizations.
Are you facing challenges with cloud visibility and escalating costs? Explore these cloud cost management tools to gain better control over your cloud expenditure.
The Cloud Cost Playbook
Visualization of a playbook, representing strategies for managing and optimizing cloud costs effectively.
Advantages of Opting for a CSP Over Building On-Premises Infrastructure
Many organizations choose to leverage cloud service providers instead of constructing and maintaining their own cloud infrastructure due to significant cost, expertise, and upkeep considerations. Utilizing a best cloud server provider delivers numerous benefits, making it a more strategic choice for many businesses:
- Reduced Capital Expenditure: Customers avoid substantial upfront investments in infrastructure. Instead, they incur predictable, operational expenses based on their consumption, transforming IT spending from CAPEX to OPEX.
- Accelerated Time-to-Market: By outsourcing the complexities of infrastructure procurement, setup, and optimization to a CSP, businesses can significantly reduce the time required to deploy new products and services. This agility is crucial in fast-paced markets.
- Enhanced Agility and Scalability: CSPs enable businesses to adapt and scale rapidly. They can quickly adjust their resources to meet changing demands without the burden of selling off existing infrastructure or investing in new hardware each time they pivot or expand.
- Comprehensive Cloud Computing Services: The best cloud server providers offer a wide spectrum of services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), and Serverless Computing, catering to diverse IT needs.
- Flexible Cloud Delivery Models: Businesses can select from various deployment models offered by CSPs, including public, private, hybrid, and multi-cloud environments, allowing them to tailor their cloud strategy to specific security and operational needs.
- Pay-As-You-Go Pricing Model: This cost-effective model ensures you only pay for the cloud resources you actively consume. It eliminates the need for over-provisioning, upfront payments, or long-term contracts, optimizing resource allocation and budget management.
- Managed Services and Support: CSPs offer varying levels of managed services, from fully managed infrastructure where the provider handles most operational tasks, to self-managed options that provide greater configuration control to your in-house engineers.
- Robust Disaster Recovery Solutions: Reputable CSPs provide geographically diverse data backup and recovery options. Your data can be replicated across multiple regions globally, ensuring business continuity and data resilience in the event of localized failures or disasters.
Furthermore, best cloud server providers take responsibility for the ongoing testing, updates, security enhancements, and optimization of the cloud infrastructure and related support services. This proactive management frees up valuable time, resources, and personnel within your organization, allowing you to concentrate on core business objectives and strategic initiatives. However, it’s important to acknowledge that the cloud model also presents certain challenges.
Key Challenges Associated with Using a CSP
Despite the numerous advantages, utilizing cloud service providers also involves several challenges that businesses should carefully consider:
Data Confidentiality Risks
Public cloud environments rely on shared, third-party infrastructure to process, store, and manage data. This differs significantly from traditional on-premises setups where data is stored on hardware directly owned and controlled by the organization. For businesses handling sensitive information, trade secrets, or regulated customer data, the reliance on external infrastructure can raise concerns about confidentiality and data breaches.
Data Security Vulnerabilities
Cloud computing inherently involves transmitting data over networks and accessing it remotely from various devices. While CSPs invest heavily in security measures, they are not immune to cyberattacks. Potential vulnerabilities in CSP systems could expose customer data to unauthorized access, leading to reputational damage, customer attrition, and legal liabilities.
Limited Infrastructure Control
Some organizations, particularly those with highly specialized workloads or stringent compliance requirements, may desire greater control over the underlying infrastructure. However, the shared nature of cloud environments can impose limitations on the level of customization and control available, potentially impacting performance optimization and specific configuration needs.
Vendor Lock-In Concerns
Over-reliance on a single cloud service provider can create vendor lock-in. If a CSP alters its pricing structure, service terms, or technology offerings in ways that are unfavorable to a customer, migrating applications and data to a different provider can be complex, costly, and time-consuming. This lack of portability can limit flexibility and negotiating power.
Considering the evolving landscape of cloud services, let’s examine the current market share distribution among the leading players.
Market Share Dynamics of the Cloud Giants (AWS, Azure, GCP)
Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are recognized as the “big three” best cloud server providers in the current market. Collectively, these three giants command a significant 66% of the global cloud infrastructure market, demonstrating a growth from 63% in the previous year, according to insights from Synergy Research Group.
Cloud Service Provider Line Graph
Line graph illustrating the market share trends of leading cloud service providers, highlighting the dominance of AWS, Azure, and GCP.
Credit: Cloud service providers market share at the beginning of 2023 – Synergy Research Group
The research indicates that the overall cloud computing market generated revenues exceeding $227 billion in the preceding year, reflecting the substantial economic impact and growing adoption of cloud technologies.
Furthermore, projections from Grand View Research anticipate a robust 13.1% Compound Annual Growth Rate (CAGR) for the US cloud computing market from 2023 to 2030. This sustained growth trajectory suggests continued expansion for both market leaders and emerging players.
Cloud Service Provider Market Share Bar Chart
Bar chart depicting the market share distribution of cloud service providers in the US market, showcasing the competitive landscape.
Credit: Cloud computing marketshare in the US – Grand View Research
This ongoing expansion signifies that the major players will likely continue to grow, alongside smaller, niche providers carving out specialized segments within the market.
Top 13 Cloud Service Providers in 2024
The following list highlights 13 of the top cloud providers that are empowering some of the world’s most innovative companies – particularly those that have migrated part or all of their operations to the cloud. These represent some of the best cloud server provider options available in the market today.
1. Amazon Web Services (AWS) – Leader in Infrastructure-as-a-Service (IaaS)
Amazon Web Services (AWS)
Logo of Amazon Web Services (AWS), the leading cloud service provider.
Amazon Web Services (AWS) delivers a vast portfolio of over 200 cloud services, spanning diverse industries and technology domains.
AWS is particularly recognized for its strength in Infrastructure-as-a-Service (IaaS), underpinned by core services like Amazon EC2 for compute, Amazon S3 for scalable storage, and Amazon RDS for database management.
With a global footprint of over 100 Availability Zones across 31 geographic regions, AWS currently holds over 34% of the global cloud computing market share, solidifying its position as a leading best cloud server provider.
While renowned for its highly scalable public cloud offerings, AWS also accommodates on-premises, private cloud, hybrid cloud, and multi-cloud deployment models. Known for its comprehensive service catalog, competitive pricing, and rapid deployment capabilities, AWS offers a range of service tiers, from free to premium.
Related article: “The 25+ Best AWS Cost Optimization Tools (Organized By Category)”
2. Microsoft Azure – Strong in Hybrid Cloud and Enterprise Solutions
microsoft azure
Microsoft Azure logo, representing its cloud computing platform.
Microsoft’s Intelligent Cloud initiative powers Azure Cloud, delivering a comparable suite of cloud computing services to AWS across more than 116 Availability Zones globally.
Azure cloud offers over 200 cloud services encompassing Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), as well as edge computing and serverless computing capabilities.
Launched in 2010, two years after AWS, Azure has steadily gained market share, now holding approximately 23%. Its appeal is particularly strong among enterprises, organizations adopting hybrid cloud strategies, and those heavily invested in Microsoft ecosystems, including Office 365. Azure is often considered a top contender for best cloud server provider for enterprise clients.
Related article: “The 15 Best Azure Cost Management Tools”
3. Google Cloud Platform (GCP) – Innovation in AI, ML, and Kubernetes
Google Cloud Platform (GCP)
Google Cloud Platform (GCP) logo, known for its innovation in cloud technologies.
Google Cloud Platform delivers a service portfolio similar to Azure and AWS but has differentiated itself through pioneering advancements in Artificial Intelligence (AI), Machine Learning (ML), Data Analytics, and Kubernetes, the widely adopted container orchestration platform.
GCP is also favored by smaller companies that regularly utilize Alphabet’s suite of services, such as Google Workspace (Docs, Sheets, Gmail, etc.), Google Drive, YouTube, and Google Console. For organizations prioritizing data analytics and AI, GCP is often regarded as the best cloud server provider.
Related article: “The 15 Best GCP Cost Optimization Tools For Google Cloud”
4. Alibaba Cloud – Leading Cloud Provider in Asia
alibaba
Alibaba Cloud logo, representing its strong presence in the Asian cloud market.
For businesses operating in Southeast Asia and considering cloud adoption, Alibaba Cloud is a primary consideration. Similar to AWS’s origin from Amazon, Alibaba Cloud evolved from the Alibaba e-commerce ecosystem. Since 2009, it has grown to capture approximately 5% of the global cloud services market, making it the largest best cloud server provider in Asia.
Alibaba Cloud supports critical operations for a wide range of entities, including large enterprises, SMEs, government agencies, and non-profit organizations.
5. IBM Cloud – Multi-Cloud and Hybrid Cloud Expertise
ibm cloud
IBM Cloud logo, signifying its expertise in hybrid and multi-cloud solutions.
IBM Cloud Services assists businesses seeking a smooth transition from familiar on-premises environments to digital operations. Supporting approximately 4% of the cloud computing services market, IBM offers over 170 products across on-premises, hybrid cloud, and multi-cloud deployments.
Similar to the top four providers, IBM Cloud focuses on managed Infrastructure-as-a-Service (IaaS) and comprehensive cloud migration services. For organizations with complex hybrid or multi-cloud requirements, IBM Cloud is often considered a strong best cloud server provider option.
6. DigitalOcean Cloud – Developer-Centric Cloud for SMBs
digitalocean cloud
DigitalOcean Cloud logo, known for its developer-friendly cloud platform.
The DigitalOcean Cloud platform provides developers with a streamlined platform for deploying and scaling applications across multiple virtual servers. It ranks as the third-largest hosting company globally and primarily offers compute and storage services.
DigitalOcean delivers IaaS solutions with a specific focus on small and medium-sized businesses (SMBs), utilizing a pay-as-you-go pricing model. For developers and SMBs seeking ease of use and cost-effectiveness, DigitalOcean is often considered a best cloud server provider.
7. Salesforce Cloud – Pioneer of Cloud-Hosted Services and SaaS
salesforce cloud
Salesforce Cloud logo, a pioneer in Software-as-a-Service (SaaS) solutions.
Salesforce pioneered the Software-as-a-Service (SaaS) model in its modern form in the late 1990s. Today, Salesforce Cloud offers diverse cloud-based applications across marketing, sales, customer experience, analytics, commerce, and customer service domains.
Salesforce Cloud services also power its flagship product, the customer relationship management (CRM) suite. For businesses prioritizing SaaS and CRM solutions, Salesforce Cloud is a leading best cloud server provider.
8. Tencent Cloud – Expanding Global Footprint
tencent cloud
Tencent Cloud logo, reflecting its growing presence in the global cloud market.
Tencent Cloud offers a comprehensive range of cloud computing services, from cloud virtual machines to cloud file storage and more. Similar to Alibaba Cloud, Tencent is a major cloud provider in China. However, Tencent Cloud is expanding globally, operating across 26 regions and over 70 Availability Zones in Asia, Oceania, Europe, and the Americas.
9. Oracle Cloud Infrastructure (OCI) – Versatile CSP with Database and Application Focus
OCI
Oracle Cloud Infrastructure (OCI) logo, emphasizing its focus on databases and custom applications.
Oracle was the first vendor to offer IaaS, PaaS, and SaaS cloud delivery models within a unified platform. OCI provides access to a broad spectrum of cloud services, including on-premises, hybrid cloud, public cloud, and dedicated Cloud@Customer options. OCI also delivers multi-cloud solutions, such as Oracle Database Service for Microsoft Azure.
Like the top four CSPs, OCI’s distributed cloud portfolio spans multiple regions worldwide and supports pay-as-you-go pricing. For organizations heavily invested in Oracle technologies or requiring robust database solutions in the cloud, OCI is often considered a best cloud server provider.
10. Huawei Cloud – Global Ambitions
huawei cloud
Huawei Cloud logo, signifying its global expansion strategy in the cloud market.
Having captured a significant 18% share of the Chinese cloud market, Huawei is actively expanding its reach to deliver a wide array of cloud computing services across 170 countries. This global expansion strategy positions Huawei Cloud as a potential future provider for businesses worldwide.
11. Dell Technologies Cloud – Virtualization and Multi-Cloud via VMware
dell technologies cloud
Dell Technologies Cloud logo, highlighting its partnership with VMware for multi-cloud solutions.
Leveraging VMware software and Dell Technologies infrastructure, Dell offers an integrated multi-cloud platform. As a hybrid and multi-cloud provider, Dell emphasizes storage and data protection services. Dell Technologies Cloud is enterprise-grade, providing highly scalable and secure cloud services, particularly for organizations prioritizing virtualization and data management.
12. Cisco Cloud Solutions – Hybrid Cloud and Security Focus
Cisco, a long-established player in networking, initially focused on connecting computers via LANs and routers. While entering the cloud market later with its Global InterCloud solution in 2014, Cisco offers valuable solutions, especially for hybrid cloud strategies.
Cisco’s multi-cloud solutions facilitate seamless integration and management, optimizing workloads and enhancing operational efficiency. Their user-friendly interfaces and comprehensive support services simplify cloud resource deployment and management, easing migration complexities. Cisco is particularly recognized for robust security protocols, ensuring data integrity and privacy across diverse environments. For organizations prioritizing hybrid cloud and strong security, Cisco is a noteworthy best cloud server provider consideration.
13. Rackspace – Managed Cloud Services and Fanatical Support
Rackspace logo, known for its managed cloud services and “Fanatical Experience®” customer support.
Known for robust infrastructure and high-performance cloud solutions, Rackspace offers a mix of public, private, and hybrid cloud environments tailored to diverse customer needs. Their managed cloud services are a key differentiator, providing expert support and management, streamlining operations and reducing burdens on internal IT teams.
Rackspace is distinguished by its “Fanatical Experience®,” a customer service approach emphasizing responsiveness, expertise, and commitment to customer success. While holding a smaller market share, Rackspace excels in customer service, making it a strong option for organizations valuing high-touch support. For businesses needing extensive managed cloud services and premium support, Rackspace can be considered the best cloud server provider.
Honorary Mentions
- Hewlett Packard Enterprise (HPE) services: HPE is focusing on Edge-to-Cloud computing and hybrid cloud deployments, catering to organizations with distributed infrastructure needs.
- Linode Cloud services: Linode specializes in providing virtual machines, managed databases, Kubernetes, and cloud storage, appealing to developers and businesses seeking straightforward, developer-friendly cloud solutions.
Next Steps: Gain Visibility, Understanding, and Control Over Your Cloud Costs with CloudZero
Many cloud cost management tools struggle with data accuracy due to over-reliance on manual tagging, which is often inconsistently applied.
As businesses increasingly adopt multi-cloud strategies, the need for a sophisticated cloud cost intelligence platform that delivers clear, actionable insights becomes critical.
CloudZero’s cloud cost intelligence approach empowers you to:
- Access, enrich, analyze, and leverage comprehensive cost data from leading cloud service providers.
- Collect, analyze, and share granular, hourly cost information across hybrid and multi-cloud deployments (AWS, Azure, GCP).
- Measure cloud service costs for platforms like Snowflake, MongoDB, Databricks, New Relic, and Kubernetes within relevant business contexts.
- Track costs associated with specific customers, products, features, projects, environments, and other dimensions aligned with your business structure.
- Utilize CloudZero Advisor to optimize instance selection for AWS, GCP, or Azure workloads, ensuring cost-efficient resource utilization.
- Analyze individual tenant costs in multi-tenant environments, providing precise cost allocation and chargeback capabilities.
- Enable timely Slack alerts for engineers regarding anomalous cost trends, facilitating proactive intervention and preventing budget overruns.
Experiencing CloudZero in action provides a much clearer understanding of its capabilities. to discover why companies like Drift (who achieved $2.4 million in savings), MalwareBytes, and Remitly trust CloudZero to enhance their cloud cost management and optimization strategies.
Author: Cody Slingerland
Cody Slingerland is a FinOps Certified Practitioner and experienced content creator specializing in SaaS and technology. He collaborates with internal teams and subject matter experts to develop insightful content for the CloudZero blog.
