Gartner: Global IaaS Public Cloud Services Market Grew 41.4% in 2021

“Regional cloud ecosystems are becoming increasingly important amidst growing geopolitical fragmentation and emerging regulatory and compliance requirements, presenting an opportunity for providers with a strong regional presence,” added Mr. Nag.

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According to Gartner, the global Infrastructure-as-a-Service (IaaS) market grew 41.4 percent to $90.9 billion in 2021, up from $64.3 billion in 2020. In 2021, AWS remained the market leader in IaaS, followed by Microsoft Azure, Alibaba Cloud, Google Cloud, and Huawei Cloud.

“The IaaS public cloud market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads,” said Sid Nag, Vice President Analyst at Gartner. “Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprises to address emerging needs such as sovereignty, data integration and enhanced customer experience.”

The top five IaaS providers will control more than 80 percent of the market by 2021. AWS maintained its dominance in the global IaaS public cloud market in 2021, with sales of $35.4 billion and a 38.9% market share.

Photo Sid Nag, VP Analyst at Gartner
“Emerging technologies that can help businesses bring experiences closer to their customers, such as the metaverse, chatbots and digital twins, will require hyperscale infrastructure to meet growing demands for compute and storage power,” said Sid Nag, VP Analyst at Gartner.

Microsoft Azure came in second with a 21.1 percent market share and above-market growth, with IaaS sales exceeding $19 billion in 2021. Microsoft Azure has been positioned to seize possibilities in virtually every vertical market, with many firms already relying on Microsoft’s corporate software and services.

Alibaba Cloud was the world’s No. 3 IaaS public cloud provider in 2021, with a 9.5 percent market share and $8.7 billion in sales. While Alibaba continues to lead the Chinese cloud market, it is also well positioned to become the top regional cloud provider in Indonesia, Malaysia, and other rising cloud markets, thanks to its local market knowledge and ability to act as a digital commerce bridge.

“Regional cloud ecosystems are becoming increasingly important amidst growing geopolitical fragmentation and emerging regulatory and compliance requirements, presenting an opportunity for providers with a strong regional presence,” added Mr. Nag.

Google Cloud saw the highest growth rate of the top five IaaS vendors, growing 63.7% in 2021 to reach $6.4 billion in revenue. This growth was driven by steadily increased adoption for traditional enterprise workloads as well as Google’s innovation in more cutting-edge capabilities such as artificial intelligence and Kubernetes container technologies, supported by an expansion of their partner ecosystem to reach a wider customer base.

Huawei Cloud

According to Gartner, Huawei Cloud’s growth slowed in 2021 after two years of nearly 200 percent growth, but it still held the fifth-largest market share with $4.2 billion in revenue. In the last two years, Huawei has made major investments in its IaaS public cloud ecosystem, and it has been able to increase its offers for universities, developers, and startups thanks to an improved strategy of open hardware, open-source software, and partner enablement.

“The next phase of IaaS public cloud growth will be driven by customer experience, digital outcomes and the virtual-first world,” added Mr. Nag. “Emerging technologies that can help businesses bring experiences closer to their customers, such as the metaverse, chatbots and digital twins, will require hyperscale infrastructure to meet growing demands for compute and storage power.”