Is IaaS the Next Big B2B Trend in SoCal?

The worldwide infrastructure as a service (IaaS) market grew a whopping 22.5% in 2024, reaching $171.8 billion, according to Gartner, Inc., a business and technology insights company

Amazon retained the No. 1 position in the IaaS market in 2024, followed by Microsoft, Google, Alibaba and Huawei.

“As enterprises continue to seek greater flexibility, improved resilience and optimized performance, there is sustained demand for cloud migration and modernization services,” said Hardeep Singh, principal analyst at Gartner. “Enterprises want to transform their IT infrastructure by leveraging multiple platforms for AI and prioritizing modernization by migrating existing workloads to the cloud. They are also deploying cloud-native applications across diverse environments.”

This trend is further fueled by the demand for flexibility with data residency and sovereignty, as enterprises seek to gradually transition to the cloud while keeping control over their data and operations.

“Cloud providers are investing heavily in AI infrastructure and capabilities to become leaders in the rapidly evolving AI-optimized IaaS market. They expect that AI will become a much larger revenue contributor in the future, even though it currently remains a relatively small slice of their overall revenue within the IaaS space,” said Singh. “Emerging AI-optimized IaaS offerings from nonhyperscalers, or GPU as a service (GPUaaS) providers, though still nascent, have also played a key role in addressing immediate capacity requirements by offering flexible, high-performance compute on demand.”

In 2024, the top five IaaS providers accounted for 82.1% of the market. Amazon continued to lead the worldwide IaaS market with revenue of $64.8 billion and 37.7% market share, followed by Microsoft with a 23.9% market share (see Table 1). Google, Alibaba Group and Huawei maintained their respective positions year-over-year.

Homegrown IaaS

Several companies in Los Angeles offer IaaS solutions. These companies provide cloud computing resources, like servers, storage and networking, allowing businesses to build and run their applications without managing the underlying infrastructure. Examples include:

• Mission Cloud specializes in outsourced IT support and management, particularly for AWS infrastructure. They are known for responsiveness, effective problem-solving and cost-saving solutions.
• Be Structured Technology Group focuses on providing technology solutions to small businesses and nonprofits, with a strong emphasis on effective technology solutions.
• CyberDuo combines IT and cybersecurity services, offering holistic protection with a focus on managed SIEM services for small businesses, startups and nonprofits.
• TechMD offers comprehensive IT solutions, including cloud-based transitions, IT infrastructure support and cybersecurity enhancements.
• AllSafe IT provides a range of IT support services, including managed IT services, cloud computing solutions and phone systems, with a focus on “Worry Free IT Services.”
• Exigent Technologies serves small to mid-sized businesses in Los Angeles, focusing on providing technology guidance and support.
• Techmedics offers flexible managed IT support plans with dedicated teams of certified engineers.
• OpenX Technologies focuses on digital advertising markets and technologies, aiming to optimize value for publishers and advertisers.
• Kobe Digital, while known for SEO, also offers services that can be relevant for businesses needing cloud infrastructure for their online presence.

These companies, among others, contribute to Los Angeles’ thriving tech scene and offer a variety of IaaS solutions to meet the needs of different businesses. IaaS appears to be more than a passing fad, and many large entities are ready to invest.