Company expenditure on cloud infrastructure services reached $53 billion in Q1 2022, according to new research from Synergy Research Group. This is up 34 percent from the first quarter of 2021, making it the eleventh quarter in a row that the year-over-year growth rate has been between 34 and 40 percent.
As the thriving cloud industry continues to develop at a quick pace, AWS remains the market leader, with a global market share of 33 percent. For the third quarter in a row, its yearly growth surpassed that of the total market, according to Synergy’s latest report.
Meanwhile, Microsoft continues to grow its market share by about two percentage points every year, while Google’s yearly market share growth is approaching one percentage point. Other cloud providers’ revenues have increased by almost 150 percent since the first quarter of 2018, but their combined market share has dropped from 48 percent to 36 percent as their growth rates remain much behind those of the industry leaders.
IaaS, PaaS, Private Cloud
Synergy believes that quarterly cloud infrastructure service revenues (including IaaS, PaaS, and hosted private cloud services) were $52.7 billion, with trailing twelve-month revenues reaching $191 billion, after most of the major cloud providers had reported their financial data for Q1. The majority of the market is made up of public IaaS and PaaS services, which expanded by 37% in Q1.
The main cloud providers’ dominance is even more obvious in public cloud, where the top three companies control 71 percent of the industry. In terms of geography, the cloud market continues to expand rapidly in all corners of the globe.
“While the level of competition remains high, the huge and rapidly growing cloud market continues to coalesce around AWS, Microsoft and Google,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “Aside from the Chinese market, which remains totally dominated by local Chinese companies, other cloud providers simply cannot match the scale and geographic reach of the big three market leaders. As AWS, Microsoft and Google continue to grow at 35-50 percent per year, other non-Chinese cloud providers are typically growing in the 10-20 percent range. That can still be an attractive proposition for those smaller providers, as long as they focus on regional or service niches where they can differentiate themselves from the big three.”