Public cloud spending increased 26% for Q1 – report


Microsoft, Amazon, Salesforce and Google have risen to the top

Public cloud services and infrastructure markets hit 6 126 billion in the first quarter of 2022, up 26% year on year. Infrastructure as a service (IAAS) and platform (PAS) as a service grew the most, with 36% or $ 44 billion in the first quarter. Some of the takeaways from those Synergy Research Group (SRG) Latest Report.

“Across the entire public cloud ecosystem, the companies that were most featured were Microsoft, Amazon, Salesforce and Google. Other key players include Adobe, Alibaba, Cisco, Dell, Digital Realty, IBM, Inspar, Oracle, SAP and VMware, ”SRG said.

According to the report, these businesses account for 60% of all public cloud-related revenue. SRG found that managed private cloud services, Enterprise Software as a Service (SaaS) and Content Delivery Network (CDN) services combined total revenue of $ 54 billion, an increase of 21% year-on-year. Amazon, IBM and Microsoft-led private services led the charge, while Microsoft, Salesforce and Adobe had standouts in the Sauce segment. Akamai, Amazon and Cloudflare have eaten up the lion’s share of quarterly CDN revenue.

Growth and Leader of Public Cloud Market – Q1 2022. Image through Synergy Research Group

Another 28 28 billion has been spent on public cloud infrastructure, including building, leasing and equipping data centers, which is up 20% annually. And while global cloud spending is rising, nowhere is it growing faster than in the United States, SRG said. 51% of all hyperscale data center capacity is in the United States, accounting for 44% of all public cloud service revenue.

“Across all services and infrastructure markets, the vast majority of the leading players are US companies, the rest are mostly Chinese,” SRG said. The rest, in this case, represents about 8% of total Q1 cloud service revenue and about 15% of the global hyperscale data center capacity.

Dive into IaaS and PaaS

John Dinsdale, a lead analyst at Synergy Research Group, forecasts 15-40% market growth per year and says PaaS and IaaS are leading the cloud services market.

“Growth will inevitably stop over the next five years as these markets expand, but we are still forecasting annual growth rates that typically range from 10% to 30%,” Dinsdale said. Densdale said he hopes the size of large cloud service providers will have to double in the next three to four years to keep global demand growing.

IaaS enables enterprise IT to outsource cloud computing network infrastructure such as physical computing resources, scaling, and security. Examples of IaaS include Amazon EC2, Microsoft Azure Virtual Machines and Google Compute Engine. IaaS costs have increased dramatically year after year, driven by new trends in hybrid cloud and hybrid workforce solutions. As enterprises digitize their activities in the cloud, IaaS sales are expected to increase.

PaaS provides a framework for developers to create customized applications and middleware. PaaS providers offer host environments that provide the app to users on the web. PaaS is a popular option for small to medium-sized businesses and bootstrap startup operations. They find it interesting as an affordable way to manage development resources. There is no long lasting hardware to pay for it. The core development stack is managed, and the app market time is fast.

SRG’s forecast for strong IaaS segment growth was also reflected in Gartner’s recent poll on public cloud IaaS spending. That is, the segment grew 41.4% in 2021, totaling $ 90.9 billion, up from $ 64.3 billion a year. Amazon still follows the premier IAAS providers, Microsoft and Alibaba in the survey. Google and Huawei are in fourth and fifth place respectively. Together, the top five IaaS providers account for more than 80% of the entire market, Gartner reports.

According to Gartner, end-user spending on global cloud services will increase by 20.4% to $ 494.7 billion, up from $ 410.9 billion in 2021. Gartner expects end-user spending to be close to $ 600 billion in 2023. The report highlights the growth of the IaaS market and identifies Hyperscale Edge Computing and Secure Access Services Edge (SASE) as disruptive to the market.

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