Cloud Infrastructure Services (Global)

The main articles are:

• Cloud Computing (Global Market)
• IaaS
• PaaS
• Cloud Infrastructure Hardware (Global Market)
• Cloud System Management (CSM) software

2023

Global Cloud Storage Market Reaches $57 Billion

In 2023, the size of the global cloud storage services market reached $57 billion. At the same time, the total amount of resources provided to customers amounted to approximately 2100 Ebytes. Such indicators are given in the study by Omdia, the results of which were published on June 17, 2024.

The report said the biggest player in the market in question is. Amazon Web Services (AWS) At the end of 2023, this cloud platform accounted for approximately 30% of total revenue, or $17.1 billion. In second place in terms of revenues from the provision of storage services is, and Microsoft closes the top three. Google Among Chinese cloud service providers, the championship holds Alibaba with a 6% share in the world market - about $3.42 billion. It is followed by one China Telecom that aggressively develops business in the PRC.

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Freepik

If we consider the industry in terms of the storage capacity provided to customers, then AWS is also the leader. Of the 2,100 Ebytes consumed in 2023, this cloud platform accounted for 38%, or 798 Ebytes. The most popular in terms of capacity are object storage services. However, despite the fact that object storage leads in capacity, revenues from cloud storage services are evenly distributed between object, block and file storage. This is due to the higher cost of block and file storage resources for most providers.

It is noted that one of the main drivers of the cloud storage market is the rapid development of artificial intelligence technologies. To train such systems, huge amounts of information are required. Omdia estimates that the CAGR (compound percentage CAGR) will be 17% in the future. As a result, by 2028 the volume of the industry will reach $128 billion.^[1]

Market growth by 19% to $270 billion - Synergy Research Group

At the end of 2023, the volume of the global cloud infrastructure market reached $270 billion. This is 19% more compared to the result for 2022. The industry continues to develop actively despite difficult macroeconomic conditions, as stated in a study by Synergy Research Group, published on February 1, 2024.

Analysts note that economic and geopolitical factors have a negative impact on the industry. On the other hand, the development of cloud technologies is facilitated by the introduction of artificial intelligence applications, primarily generative services (Genia). Amazon, the leader in the global cloud market, notes that Genia allows you to rethink most of the processes of interaction between companies and customers and develop new applications that help improve the effectiveness of business models.

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Synergy Research Group

By the end of 2023, Amazon, with its AWS (Amazon Web Services) cloud solutions, has approximately 31% of the global market, slightly less than a year ago. This is followed by Microsoft and Google with 24% and 11%, respectively. Collectively, the top three account for about 66-67% of the global cloud market.

The Synergy Research Group study also said Huawei, China Telecom, Snowflake, MongoDB, Oracle and VMware showed strong growth in the cloud services market in 2023.

The dominance of major cloud service providers is even more pronounced in the public cloud, where the top three players account for 73% of the market. Geographically, the cloud industry continues to grow actively in all regions of the world. In particular, the Asia-Pacific region has the greatest dynamics: in India, China, Australia and Japan, growth was 20% or more compared to 2022. At the same time, the United States remains the largest market for cloud technologies.^[2]

2022

How much telecom companies around the world spend on cloud infrastructure

At the end of 2022, the global costs of telecommunications companies for software for cloud infrastructures amounted to $12.9 billion. In the future, steady growth is expected, which is explained by the introduction of cloud network functions. Relevant data are provided in the IDC report published on January 17, 2024.

Analysts consider costs in areas such as Network Function Virtualization (VNF), Cloud Network Functions (CNF), and Network Function Virtualization Infrastructure (NFVI). At the same time, four market segments are considered: the basic transport network, mobile infrastructure, mobile transport communication network, as well as access networks and virtual subscriber equipment.

Global costs of telecommunications companies for cloud infrastructure software amounted to $12.9 billion

IDC notes that as of the end of 2023, most telecom workloads use VNF. At the same time, wireless and wired service providers continue to switch to cloud resources. Therefore, experts believe that the CNF segment will grow rapidly. According to IDC estimates, the CAGR (compound percentage CAGR) in the ON market for cloud telecom infrastructures from 2022 to 2027 will be approximately 16.1%. As a result, by the end of the period under consideration, costs will reach $27.3 billion, that is, they will more than double compared to 2022. The report said communication providers are looking to deploy network features to peripheral sites.

The adoption of cloud networking features is gaining momentum: CNFs are being deployed in parallel with the use of virtualization in the cloud digital infrastructure of communication service providers to provide service flexibility, lower cost of ownership, and elastic network scaling, says Ajeet Das, Director of Research at IDC.[3]

Market growth by 29% to $247.1 billion

The volume of the global cloud infrastructure market in 2022 reached $247.1 billion. This is 29% more than the result for the previous year, when costs were estimated at $191.7 billion. Such data were released on February 8, 2023 by the analytical company Canalys.

It is noted that the current macroeconomic situation, high inflation and market uncertainties force corporate clients to optimize spending on cloud services and digital business transformation. Companies are adjusting their strategies to improve efficiency and control, as well as to save money. Because of this, the growth rate of the global cloud industry is slowing. For example, at the end of 2022, an increase was recorded at 23% in monetary terms, while at the beginning of the same year, costs increased by 34% on an annualized basis.

Corporate customers are responding to higher cloud prices and higher-than-expected operating costs in a challenging macroeconomic environment. Customers who use a consumption-based payment model will optimize cloud operations to reduce workloads and reduce costs. In addition, there will be a significant slowdown in the implementation of cloud contracts, which will provoke a slowdown in market development, "said Yi Zhang, analyst at Canalys Research.

As of the end of 2022, the top three cloud providers included AWS (Amazon Web Services), Microsoft Azure and Google Cloud. Their shares were 32%, 23% and 10%, respectively. Thus, together, these three platforms control 65% of the global cloud industry in monetary terms. It is said that hyperscalers' income growth rates decreased at the end of 2022 by about 5% compared to the previous figures. Analysts believe that this trend will continue in the future. According to forecasts, in 2023, the growth of the global cloud infrastructure market will be approximately 23% against 29% in 2022. In particular, the AWS site has already faced a record low rate of revenue growth in its entire history.

Customers are rethinking how they use the cloud in business operations. In some cases, the demand for computing resources is reduced naturally, since the main tasks are performed less actively. In addition, conservative budgeting among businesses will lead to fewer pilot projects over the next 12 months, said Canalys Vice President Alex Smith.

Synergy Research Group is also talking about the slowdown in the global cloud market. The reasons are the strong exchange rate dollar against other currencies and the relatively weak Chinese market, which suffered due to restrictions imposed in response to the ongoing pandemic. COVID-19 The global cloud industry in 2022 showed growth of about $47 billion, which almost corresponds to an increase of $49 billion achieved in 2021. Public services (IaaS infrastructure as a service) and (PaaS platform as a service) make up the bulk of the market. The dominance of large cloud providers is more pronounced in the public cloud, where the top three (AWS, Microsoft Azure and Google Cloud) control 73% of the market.

This decline in growth was partly expected due to the expanding scale of the market, but there is no doubt that the current economic situation has also had a negative impact on the industry, the Synergy Research Group emphasizes.[4][5]

2021:37% market growth to $178 billion - Synergy Research

In 2021, companies around the world spent a total of $178 billion on cloud infrastructure services, up 37% from a year earlier. Such data in early February 2022 were released by analysts at Synergy Research Group.

In their research, they included business costs for IaaS (infrastructure as a service) and PaaS (platform as a service) solutions, as well as private cloud environments. IaaS and PaaS account for most of the market, and these segments are also growing faster.

Cloud Access Services Market Leaders

As for the leaders, Amazon continues to hold the top spot. The share of the American company in 2021 amounted to about 32-33%. In addition, Amazon's cloud revenue is growing faster than the market, the report said.

It also draws attention to the growth of Microsoft's share by almost 9 percentage points from the end of 2017 - to 21% by 2021. Google and Alibaba also continue to strengthen their positions. This is followed by a large group of cloud service providers, whose revenues are growing steadily, but their shares are also declining under pressure from larger competitors.

The dominance of leading cloud providers is particularly pronounced in the public cloud services segment, where the top three players account for about 71% of revenue, analysts said. As for the regions, the cost of cloud computing is skyrocketing in all parts of the planet, the researchers add.

The fact that the market growth rate in 2021 was higher than a year earlier is a strong proof of the value and attractiveness of cloud services, despite the already large market size. Now companies spend twice as much on cloud services as on their own data centers, "says John Dinsdale, a leading analyst at Synergy Research Group, whose words the company's press service quoted on February 3, 2022. - Meanwhile, the struggle for market share is becoming more interesting. Amazon continues to lead by a wide margin, but Microsoft, Google and Alibaba are still growing faster. Microsoft's market share has increased significantly, and it is now only eleven percentage points behind Amazon. The tide continues to lift all boats, but some of them sail faster than others.

Meanwhile, analysts Canalys calculated that in 2021, global spending on cloud infrastructure services increased by 35% and approached $192 billion, while in 2020 the corresponding costs were at the level of $142 billion. Experts noted that against the background of the revival of the economy after lockdowns and the growing confidence of customers, companies began to actively conclude long-term contracts with cloud providers.

In the future, new immersive use cases under the Metaverse concept are expected to drive demand and demand for more powerful, distributed, intelligent, and scalable cloud services with less response time.

Cloud Infrastructure Market Leaders

Cloud services are the right solution for developers and organizations looking to try their hand at the metaverse. Computing will be highly demanded in virtual and augmented reality environments, and data storage, machine learning, IoT and data analysis will be necessary to support such operations related to digital twin creation, modeling and interactivity in the metaverse, said Canalys analyst Blake Murray.

Demand is also driving continued migration of workloads to the cloud and development of cloud applications as part of digital transformation projects. In addition, pandemic-related growth drivers such as working and studying remotely, online commerce, online gaming and content streaming remain relevant.^[6]

2020

Cloud spending exceeds data center costs for the first time - Synergy Research

In 2020, the cost of services designed for the deployment and operation of the cloud infrastructure for the first time exceeded the cost of data centers. This is evidenced by data from the analytical company Synergy Research.

Experts calculated that sales of IaaS, PaaS solutions, as well as managed private clouds on a global scale at the end of 2020 reached almost $130 billion, an increase of 35% compared to 2019. At the same time, $89 billion was spent on equipment (servers, storage systems, network equipment, cybersecurity solutions) and software for data centers, which is 6% less than a year earlier. In 2019, the performance in these markets was close, but the COVID-19 coronavirus pandemic spurred demand for cloud tools.

From 2010 to 2020, sales of data center equipment increased by an average of 2% per year, while the growth rate of spending on services for cloud infrastructure was measured at 52%.

In the hardware market ON and for data centers, the largest segments with the highest growth rates in a decade were software for, and virtualizations switchboards Ethernet network security. The share of the server category in the data center equipment market remained stable, but in the segment DSS the indicators decreased.

In 2020, spending on cloud services exceeded data center costs for the first time

In the cloud deployment services market, PaaS (platform as a service), IoT and analytics are among the leading areas with the highest growth rates in a decade. The share of the IaaS segment (infrastructure as a service) was quite stable, and the share of services for managed private clouds fell slightly.

Over the past 10 years, we have seen a sharp increase in the capabilities of computer systems, the complexity of corporate applications and the increase in the volume of data generated and processed. All this, in turn, leads to a constant increase in data center capacity needs. However, 60% of servers sold today are used not in corporate data centers, but in data centers of cloud service providers, "says Synergy Research lead analyst John Dinsdale. - When a company needs computing power to manage data and run business applications, it can either invest in its own data center infrastructure or use cloud services offered by public cloud providers. Obviously, companies are opting for a cost-effective option, and that's reasonable for many of them.

The expert added that, most likely, a strong reduction in spending on corporate data centers is not expected in the next five years, while the rapid growth of the cloud market is very likely.

Cloud Services and Data Center Costs

Amazon and Microsoft tend to perform above-market, Synergy Research reported. Amazon's share remains at more than 30%, and Microsoft's share in 2020 increased from 10% to 20% in 16 quarters. Excluding the two companies, the rest of the providers combined still show growth of more than 30% per year, suggesting growth opportunities for smaller cloud providers.

Amazon's share of the global cloud infrastructure services market ranges from 32-34%, according to the study. Microsoft, Google and Alibaba have steadily strengthened their positions for the past four years, but not at the expense of Amazon. The combined share of smaller cloud market players has declined by 13 percentage points over the past 16 quarters. Among them, the most notable vendors are IBM, Salesforce, Tencent, Oracle, NTT, Baidu, SAP, Fujitsu and Rackspace.

The analytical report also says that the dominance of the leading five is especially pronounced in the segment of public clouds: their share here is measured at 80%.^[7]

PaaS and IaaS market growth by 33%, to $142 billion - Canalys

The volume of the global market for services for cloud infrastructure in 2020 amounted to $142 billion, an increase of 33% compared to 2019, when the cost of such solutions was measured at $107 billion. This is evidenced by the data of analysts. Canalys

According to them, the demand for PaaS and IaaS products, as well as services for placing cloud infrastructure on the customer's resources as a whole in 2020, was higher than expected, despite the initial decrease in the number of large consulting projects in this area.

The rising costs of cloud infrastructure are linked to "intense demand for clouds used to support remote work and learning, e-commerce, streaming content, online gaming and collaboration," the researchers said. In the context of the COVID-19 coronavirus pandemic, companies began to use tools for virtual video conferencing and collaboration more often, including Zoom, which largely determined the rapid growth dynamics of the cloud infrastructure market, VentureBeat notes.

Cloud Infrastructure Services Market Leaders, Canalys Data

The pace of digitalization led by cloud computing is gaining momentum. Companies have gained great confidence in their budgets for business transformation, says Canalys analyst Blake Murray, commenting on the situation in the cloud market. - Major projects that were delayed early last year have seen a shift in priorities - now with application upgrades, migration to SAP systems and workplace transformation.Healthcare, financial services and pharmaceuticals have become the main drivers of this trend. But even those industries under pressure are shifting their investments into cloud projects, opening up new revenue streams and diversifying business models.

By the end of 2020, the following companies remained the largest service providers for deploying cloud infrastructure:

• Amazon;
• Microsoft;
• Google;
• Alibaba.

Amazon retains its leadership, but rival revenues are growing faster. For example, in the fourth quarter of 2020, Amazon Web Services revenue increased by 28%, and Google Cloud and Microsoft Azure - by 58% and 50%, respectively. Alibaba Cloud's revenue growth was measured at 54%.

The Canalys study notes that Amazon is investing in a global partner ecosystem in an attempt to maintain its momentum. Among the efforts that the company is making, experts distinguish:

• Strengthening support for ISVs ISV ()
• launch of new vertical partner competencies;
• further expansion of the distribution channel to attract more customers among representatives of small and medium-sized businesses;
• Develop new partner projects as the hybrid cloud strategy expands.

The largest service providers for deploying cloud infrastructure by the end of 2020 remained: Amazon, Microsoft, Google, Alibaba (Canalys data)

Microsoft, analysts say, has focused on initiatives aimed at growing use of Azure across all segments. For this, in particular, the corporation offers partners special programs. Microsoft's success in the cloud market was also facilitated by the COVID-19 coronavirus pandemic, which saw strong demand for tools such as Microsoft Teams and Windows Virtual Desktop, as well as Azure services.

Experts linked the growth of Google's cloud business to the "open cloud" strategy promoted by the company, with a focus on sovereignty, sustainability and multi-cloud management. Google focuses on six industries, so the partner network has adjusted its sellers and partners to fit them.^[8]

Gartner named market leaders, as well as their pros and cons

In early September 2020, research company Gartner presented a magic quadrant for the service market for deploying cloud infrastructure. Such solutions include IaaS (infrastructure as a service) and PaaS (platform as a service).

According to experts, Amazon Web Services (AWS) it still strongly broke away from competitors in terms of share in the market under consideration. The top three also includes Microsoft and. Google

Usually, the magic quadrant divides market participants into four categories: leaders (leaders), challengers (challengers), visionaries (visionaries) and niche players (niche players). In the case of market research on services for cloud infrastructure deployment and operation, Gartner included only leaders (listed above) and niche players. The latter included Alibaba Cloud, Oracle, IBM and Tencent Cloud.

Gartner named the leaders of the cloud infrastructure services market and spoke about their advantages and disadvantages

Gartner analyst Raj Bala, one of the authors of the study, noted in a conversation with SiliconANGLE that AWS remains the clear leader, especially in terms of market share. However, competition is escalating as Google, Oracle and Alibaba expand their products.

AWS's cloud infrastructure is well ahead of competitors in product functionality, such as IaaS and DPpaaS (a private cloud database platform as a service), the researchers said. The advantage of the company is also the comprehensive development of all kinds of products - from chips for a full set of software.

The study also cites criticism of AWS. For example, some customers and partners are worried about the large size and reach of the company's business, which turns AWS into their competitor.

Analysts called the main disadvantage of the Microsoft Azure cloud the lowest ratio of availability zones to the total number of regions among all participants in the magic quadrant.

An accessibility area is a unique physical location within a region. Each zone consists of one or more data centers equipped with independent power, cooling, and networking systems. The region is a set of data centers deployed within the perimeter with a given delay and connected through a dedicated regional network with low delay.

Raj Bala says Microsoft is practicing an outdated approach using two local sites interconnected for disaster recovery instead of using availability zones.

AWS remains the market leader in cloud infrastructure services, with Google, Oracle and Alibaba competing with the company

Another problem that analysts saw from Microsoft is the inability of the corporation to guarantee the declared amount of cloud resources. So, during the outbreak of the coronavirus COVID-19, some customers did not have enough capacity, and they were left without virtual machines and resources for which they paid. The third minus for Microsoft is "very expensive" technical support, especially for new customers.

At the same time, Gartner praised Azure for "a complete comprehensive set of solutions related to a wide range of workloads and applications," for "concerted" efforts to improve software developer service, and for the benefits to business representatives who have long used the company's products.

Regarding Google Cloud, analysts noted the company's contribution to the development of open source projects such as Kubernetes and TensorFlow, as well as the growing market share and expansion of functionality compared to Azure. At the same time, Google is criticized for lack of attention to corporate customers and "slowness in the implementation of highly publicized partner projects."^[9]

2019

The market for services for creating cloud infrastructure exceeded $100 billion

In 2019, global spending on services used to deploy cloud infrastructure reached a record $107.1 billion, an increase of 37.6% compared to the previous year. Such data in February 2020 led analysts. Canalys

According to them, such a high growth rate of the cloud market indicates the ongoing expansion of the IT industry, which, in turn, is due to digital transformation projects in all industries. Companies are increasing spending on cloud services for computer computing, data storage and other tasks to analyze and interpret their data, as well as to meet their needs in DevOps practice when creating new applications and services, the study said.

Cloud Infrastructure Services Market Leaders, Canalys Data

Amazon remains the largest provider of services for cloud infrastructure, but competitors are growing faster. At the end of 2019, Amazon accounted for 32.3% of the market and revenue of $34.6 billion, which was 36% higher than a year ago.

The following Microsoft ended the year with sales of services for launching cloud infrastructure at $18.1 billion (16.9% in the total market volume) and 63.9% growth in such revenues. The highest dynamics, measured by 87.8%, in 2019 showed, Google closing the leading three. Google's market share was 5.8%, which is not much more than the nearest pursuer - (Alibaba 4.9%).

Amazon's investment in new corporate sales and marketing resources, coupled with the overall availability of AWS branches and the launch of AWS Outposts and AWS Local Zones, contributed to the company's rise in the cloud market.

Microsoft Azure's growth rate was higher this quarter as the division gained momentum in the corporate sector and benefited from its extensive channel reach. As support for its products ends, Microsoft recommends that partners and customers migrate Windows Server 2008 workloads to the Azure cloud.

Google Cloud continues to make strides in terms of attracting new business customers and developing its partner network. In 2019, the company greatly increased its sales team and attracted partners to its organization to optimize its cloud business.

Global spending on services used to deploy cloud infrastructure reached a record $107.1 billion, up 37.6% from the previous year

As for Alibaba, the company remains the leader in the Chinese cloud market and has grown faster in revenue. Alibaba aims to expand its corporate customer base in the rest of the Asia-Pacific region and in Europe, where the company uses two-tier distribution.

Alibaba, Amazon, Baidu, Facebook, Google, Microsoft and Tencent spent more than $60 billion in total in 2019 to develop their data center infrastructure, Canalys said.

Financial, healthcare and other companies are looking to be technologically advanced, so many are using multi-cloud and hybrid IT models, recognizing the strengths of each cloud provider and the different computing operating environments required for specific types of workloads, according to Canalys analyst Alastair Edwards.

The expert says more companies are entering into long-term, multi-year agreements with cloud service providers, moving from situational and uncontrolled use of services to a more manageable and predictable approach.

According to Canalys forecasts, the global market for services for cloud infrastructure in 2020 will grow by 32% and reach $141 billion, and in 2024 the figure will be $284 billion. Thus, high growth tepas will remain on the market.

Cloud services spend above data center hardware and software sales for the first time

According to the analytical company Synergy Research Group, in 2019, $97 billion was spent worldwide on services used to deploy and operate the cloud infrastructure. We are talking about IaaS, PaaS solutions and managed private clouds.

For the first time, the annual costs of such services exceeded the costs of equipment and software for data centers: in 2019, the volume of this segment grew by only 1% and reached $93 billion.

Dynamics of changes in service costs for creating cloud infrastructures and IT solutions for data centers, data from Synergy Research Group

The study notes that from 2009 to 2019, global costs of services for creating a cloud infrastructure increased by about 56%, and at the beginning of this period this market was just emerging.

Over the same 10 years, investments in hardware and software installed in data centers have grown by about 4% annually, largely due to high-performance servers. At the same time, server deliveries in quantitative terms almost did not change from year to year.

Despite the growth in sales of IT solutions for data centers in 2018, the growth rate of spending on cloud computing did not decrease, and in 2019 they increased to 40%. While maintaining the dynamics of demand for services for creating clouds, the volume of this market is expected to greatly exceed $100 billion by the end of 2020.

According to Synergy Research analyst John Dinsdale, over a 10-year period of time, by the end of 2019, the demand for data center capacities increased rapidly amid the growth of computer capabilities, corporate applications became more complex, and the volume of data generated and processed in companies became more and more.

According to Synergy Research analyst John Dinsdale, over a 10-year period of time, by the end of 2019, data center capacity demand increased rapidly amid the growth of computer capabilities

Over the past 10 years, there has been a significant transformation in the IT market. Companies now spend almost $200 billion a year on the purchase and lease of data center capacities, but cloud providers benefit the most from these costs, the expert said.

According to CRN, Amazon, Apple, Google, Facebook and Microsoft became the leaders in the volume of construction of new data centers in 2019. They create so-called hyperscale objects that contain thousands of servers and other devices, as well as serve millions of virtual machines.

Experts report that Amazon continues to control a third of the cloud infrastructure services market, despite intense competition from fast-growing players and niche providers showing less strong growth. The leading five accounted for about three quarters of the market.

Over the past decade, hardware software and data center segments with the highest growth rates have become for, and software network virtualizations switchboards Ethernet security solutions by the end of 2019, according to Synergy Research Group. The fastest growing categories of services for deploying the cloud infrastructure are related to PaaS solutions, especially those related to databases to the Internet , things and analytics, the report said.

John Dinsdale believes that IT distributors need to offer customers solutions that combine local and cloud technologies.

I try to avoid the word "hybrid" as it has become too battered. But partners should be able to effectively focus on the needs of companies related to the unification of local and cloud solutions... Obviously, in the portfolio of partners, if they want to remain relevant in the market and be successful, there must be a large set of cloud services and deep skills in servicing cloud infrastructures, "he said[10]

2018

Cloud infrastructure services market reaches $80 billion - Canalys

According to the analytical company Canalys, the global market for services used to deploy cloud infrastructure reached a record $80 billion in 2018 against $55 billion a year earlier. Thus, there was an increase of 45.6%. Some leaders are showing higher momentum, according to a study released in February 2019.

The largest provider of cloud services remains Amazon, which had nearly half of its revenue in the market in 2018. You can learn more about the arrangement of forces from the table below.

Largest Service Providers for Cloud Infrastructure Deployment, Canalys Data

Cloud infrastructure services provide the core components needed to support enterprise digital transformation projects related to evolving new capabilities for customers, deploying the Internet of Things to transform processes, leveraging big data and analytics for better analysis results, and introducing machine learning and artificial intelligence for automation, said Canalys analyst Matthew Ball.

According to experts, partners play an increasingly significant role in cloud markets. This is due to the need to understand customer requirements, recommend services, deploy and integrate, and simplify payment and management of multiple cloud services.

Canalys senior analyst Alastair Edwards says cloud providers are betting on developing partner programs to engage more than just system integrators. A network of partners is necessary to work with customers in the small and medium-sized business segment, the expert believes. Canalys expects an increase in the share of revenue that cloud service providers will receive from partners in 2019.^[11]

Spending on cloud infrastructure services rose 48% to $70 billion - Synergy

In 2018, the market for services for deploying cloud infrastructure reached almost $70 billion, an increase of 48% compared to the previous year. At the same time, the leading five, including companies, Amazon,, and Microsoft Google, IBM Alibaba showed a stronger cumulative rise - by 60%. This was announced on February 5, 2019 by analysts at Synergy Research Group.

We are talking about public services IaaS, PaaS, as well as managed private clouds. The largest costs are for IaaS and PaaS solutions. The balance of power among the largest providers of services for the operation of the cloud infrastructure is as follows:

• Amazon (market share at the end of 2018 - 34%);
• Microsoft (15%);
• Google (7%);
• IBM (7%);
• Alibaba (5%).

Major Service Providers for Cloud Infrastructure Deployment

Synergy Research chief analyst John Dinsdale said 2018 was a strong year for the cloud market as its growth rate unexpectedly increased. In subsequent years, the dynamics will steadily decline, as the market volume reaches high values, the expert added.

Cloud infrastructure service market leaders are strengthening positions at the expense of smaller players, the study said. The joint share of the latter in 2018 decreased by 5 percentage points. Many small suppliers are still showing growing revenues, but it is hard for them to confront the IT giants.

Amazon holds the palm and is still ahead in revenue of the four closest pursuers combined. At the same time, Microsoft, Google and Alibaba are growing not only faster than Amazon, but also the entire market in question.

Analysts also single out IBM, whose business differs from competitors: the American corporation retains a dominant position in the segment of private cloud deployment services.^[12]

Notes