Menu
Cloud spending surpasses $30B in Q2, 30% market growth projected in 2020

Cloud spending surpasses $30B in Q2, 30% market growth projected in 2020

"As far as cloud market numbers go, it’s almost as if there were no Covid-19 pandemic raging around the world"

Credit: Dreamstime

Spending on cloud infrastructure services surpassed US$30 billion during the second quarter of 2020, with Amazon Web Services (AWS), Microsoft and Google Cloud accounting for half of customer spend.

According to Synergy Research findings, investment during the three-month timeframe increased more than $7.5 billion compared to the same period in 2019, continuing a trend of “ever-larger increments” in cloud spending. In comparison, second quarter cloud expenditure surged $3.3 billion, $5.5 billion and $6.5 billion in 2017, 2018 and 2019 respectively.

“As far as cloud market numbers go, it’s almost as if there were no Covid-19 pandemic raging around the world,” said John Dinsdale, chief analyst at Synergy Research. “As enterprises struggle to adapt to new norms, the advantages of public cloud are amplified.

“The percentage growth rate is coming down, as it must when a market reaches enormous scale, but the incremental growth in absolute dollar terms remains truly impressive. The market remains on track to grow by well over 30 per cent in 2020.”

From a vendor perspective, AWS’ market share remained at a “long-standing mark” of approximately 33 per cent during the second quarter of 2020, followed by Microsoft at 18 per cent and Google Cloud at nine per cent. Meanwhile, and in aggregate, Chinese cloud providers now account for over 12 per cent of the worldwide market, led by Alibaba, Tencent and Baidu,

Collectively, Dinsdale said the top eight cloud providers now account for 77 per cent of overall worldwide market share, followed by a “long tail” of small providers or large companies with a minor position in the industry.

Credit: Synergy Research Group

As outlined by Dinsdale, quarterly cloud infrastructure service revenues - including IaaS, PaaS and hosted private cloud services - accounted for roughly $30.5 billion during the quarter, with trailing twelve-month revenues reaching $111 billion.

“Public IaaS and PaaS services account for the bulk of the market and those grew by 34 per cent in the second quarter,” he added. “The dominance of the top five providers is even more pronounced in public cloud, where they control almost 80 per cent of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.”


Tags MicrosoftAmazon Web ServicesAWSGoogle CloudSynergy ResearchCloud

Events

Brand Post

Show Comments