Strong growth for global cloud infrastructure spending by hyperscalers and enterprise customers

Global cloud service provider (CSP) spending on cloud infrastructure services grew by 35 percent to reach a record $49.4 billion in Q3 2021, according to the latest research from Canalys.

Growth was driven by several factors, including continued remote working and learning, and increasing use of industry-specific cloud applications. Spending has increased by $12.9 billion from Q3 2020 and by $2.4 billion from Q2 2021.

Amazon Web Services (AWS) accounted for 32 percent of total cloud infrastructure services spending in Q3, growing 39 percent year-on-year. Microsoft Azure registered growth of more than 50 percent for the 5th consecutive quarter to capture 21 percent of the market; followed by Google Cloud in 3rd place with an 8 percent share (growth of 54%).

…………………………………………………………………………………………………………………………………..

According to Synergy Research Group (SRG), global enterprise spending on cloud infrastructure services reached $45.4 billion in Q3-2021, up 37 percent from the year-earlier quarter.   Trailing 12-month revenues reached $164 billion.

Amazon, Microsoft and Google had market shares of 33, 20 and 10 percent respectively in Q3-2021. Their growth rates are higher than the overall market. Other cloud providers are continuing to experience strong cloud revenue growth, with the next 10 largest cloud providers taking 22 percent of the market between them and achieving 28 percent year-on-year growth in Q3-2021.

Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $45.4 billion, with trailing twelve-month revenues reaching $164 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 39% in Q3. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three control 70% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.

“Given their scale, ever-expanding worldwide presence and impressive revenue growth rates, it is understandable that Amazon, Microsoft and Google grab the most attention for their cloud activities. However, that makes it easy to overlook the fact that other cloud providers generated $17 billion in the quarter, a figure which grew by 27% from last year,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “By any standards a $17 billion market growing at such a rate is an attractive proposition for many service providers and their suppliers. Clearly there are challenges with the big three companies lurking in the background, so the name of the game is not competing with them head on. Providing companies are smart about targeting the right applications and customer groups, cloud can provide a broad and exciting range of growth opportunities for them.”

References:

https://www.telecompaper.com/news/global-cloud-infrastructure-services-spend-up-35-in-q3-canalys–1402475

https://www.srgresearch.com/articles/amazon-microsoft-google-grab-the-big-numbers-but-rest-of-cloud-market-still-grows-by-27

https://www.telecompaper.com/news/cloud-infrastructure-services-spend-reaches-over-usd-45-bln-in-q3-research–1402474

 

 

2 thoughts on “Strong growth for global cloud infrastructure spending by hyperscalers and enterprise customers

  1. Amazon Web Services beat expectations (by $651 million) with revenues of $16.11 billion. Its operating income, $4.88 billion, was up almost 40% from a year ago.

    Put differently, Amazon’s cloud unit, leading the cloudy sector with a 41% market share, had more operating income than the company as a whole. It makes up 15% of the company’s total revenue, with its operating margin widening to 30.3% from 28.3% in the previous quarter.

    “A lot of customers accelerated their journey to the cloud based on the pandemic,” said Amazon’s chief financial officer, Brian Olsavsky, on a conference call.

    https://www.lightreading.com/service-provider-cloud/aws-one-sparkle-in-amazons-cloudy-earnings/d/d-id/773133?

  2. Hyperscalers with their global scale are encroaching on the international and global aspects of the telecoms industry. Cloud brings a new means of delivering many services into both the CSPs themselves as well as business es and individuals. Hyperscalers are extending their reach ever closer to the customers, potentially squeezing the role of the connectivity providers. CSPs, on the other hand, have the hyper-local granularity to serve everyone and everything. As CSPs rationalise their own infrastructure they are benefiting from the Hyperscalers scale and skills to make themselves more attractive to the end user markets. Does this end in a Mexican stand-off, global political manoeuvring or national pride? Can they play nicely together in the digital sandpit or will it end in tears?

    https://www.telecomtv.com/content/the-great-telco-debate/live-debate-telcos-and-the-hyperscalers-43084/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*