Amazon, Microsoft, Google Account For 65% Of Cloud Services

Amazon now holds 33% of worldwide market share for cloud computing, leading the industry.

For the third consecutive quarter, its annual growth came in above the growth of the overall market, followed by Microsoft with 22%, Google with 10%. Collectively, the remaining companies hold 35%.

Google Cloud has announced another new partnership with a global fashion retailer to create omnichannel customer experiences and help optimize internal supply chains through an enterprise data backbone and advanced artificial intelligence and machine learning.

Well-known fashion retailers H&M Group has signed on to tap into Google Cloud’s data-analytics capabilities and secure sustainable global infrastructure to support its customer experience and supply chain.

Google Cloud will collaborate with H&M Group to develop an enterprise data backbone including a core data platform, data product, and advanced AI and ML. It will establish a new data mesh to further make all types of data and events accessible from multiple sources including in stores and online, as well as its brands ecosystem and suppliers. 

advertisement

advertisement

Amazon, Microsoft and Google accounted for more than half of the $53 billion in global cloud-service spending in the first quarter of the year, according to Data from Synergy Research Group that shows Q1 enterprise spending on cloud infrastructure services rose about 34% to nearly $53 billion in the first quarter, compared with a year ago.

Synergy estimates quarterly cloud infrastructure service revenue — IaaS (infrastructure as a service), PaaS (platform as a service), and hosted private cloud services — $52.7 billion, with trailing twelve-month revenue reaching $191 billion. Public IaaS and PaaS services account for the bulk of the market, growing by 37% in Q1.

Snowflake, one of the smaller cloud-service providers, continues to add partners as it faces growing competition from other cloud platforms. Snowflake’s annual sales doubled for each of its past two fiscal years but the company expects growth to slow to 66% this year, according to The Wall Street Journal.

Spending on cloud services by companies will continue to climb, reaching $18.3 billion in the first quarter of 2022, up 17.2% compared with a year ago, according to recent data, according to International Data Corporation (IDC). Investments range from servers and storage, to databases, networking, software, and analytics.

For the first time, IDC expects investments to surpass non-cloud infrastructure spending in 2022.

Spending on dedicated cloud infrastructure rose 20.5% year-over-year (YoY) in Q1 2022 to $5.9 billion. Of the total dedicated cloud infrastructure, 47.8% was deployed on customer premises.

For the full-year 2022, IDC forecasts cloud infrastructure spending to grow 22% compared to 2021 to $90.2 billion — the highest annual growth rate since 2018. Non-cloud infrastructure is expected to grow 1.8% to $60.7 billion.

The increase was partly is driven by “inflationary pressure and expectations of higher systems prices during 2022 as well as improvements in the supply chain in the second half of the year.”

Shared cloud systems could grow by 24.3% YoY to $63.9 billion for the full year. Spending on dedicated cloud infrastructure is expected to grow 16.8% to $26.3 billion for the full year.

Next story loading loading..