Sales of cloud infrastructure services continue to grow by around a third each quarter – despite the market maturing – and in the first quarter they jumped 34% to $55.9 billion.
According to technology research firm Canalys, cloud spending was about $2 billion higher than the previous quarter and $14 billion higher than the first quarter of 2021. The top three cloud service providers – AWS, Microsoft Azure and Google Cloud – added 42% of sales collectively. over the past year, with their market share reaching 62%.
Although more than 16 years have passed since the launch of AWS as a commercial cloud service, the growth of the basic market seems uninterrupted.
The annual growth of the global cloud market has not fallen below 30% in the past four years.
“The cloud has remained a hot market and transformation strategies emphasize digital resilience to meet the market challenges of today and tomorrow,” said Blake Murray, research analyst at Canalys. “To be effective in planning for resilience, customers turn to channel partners with the technical and consulting skills to help them effectively adopt hyperscaler cloud services.”
Canalys is a channel consultancy and therefore likes to bang on that drum.
While large companies are already investing in the cloud, smaller companies are investing more, Canalys says. Meanwhile, infrastructure hardware shortages and the possibility of hardware price inflation have prompted large enterprises to continue spending in the cloud.
AWS remains the largest cloud service provider; accounting for one in three dollars spent on cloud services, it is growing by 37% each year.
Azure was the second-largest infrastructure-as-a-service provider in the first quarter, with 21% market share. Microsoft’s cloud factory grew 46% in the first quarter while doubling the number of Azure contracts over $100 million from the first quarter of last year.
Google Cloud has seen the fastest growth of the top three, growing 54% in the last quarter, but still only gained an 8% market share, according to Canalys. However, its growth comes at a cost. The Chocolate Factory is trying to cut operating losses from its cloud business, which hit $931 million in the first quarter.
The report also notes the explosion in the number of cloud systems integrators with Accenture, Atos, Deloitte, HCL Technologies, TCS, Kyndryl, Tech Mahindra and Wipro leading the pack.
“As the use cases for cloud infrastructure services grow, the potential complexity increases, and we see hybrid and multi-cloud deployments becoming commonplace in the market,” said research analyst Yi Zhang. at Canalys. “Hyperscalers invest in rapid channel development and partners respond as opportunities develop.” ®