Cloud infrastructure services spend for Q1 reaches $29bn despite COVID-19 outbreak
This was in line with the expected market growth rate and showed ‘no meaningful negative impact’ as a result of the COVID-19 pandemic.
Data shows that the Q1 spend on cloud infrastructure services reached $29 billion, up 37% from the first quarter of 2019, according to Synergy Research Group.
The research group said anecdotal evidence points to some COVID-19-related market tailwinds as additional enterprise workloads are pushed onto public clouds.
In the mist of it all, Amazon (NASDAQ: AMZN) growth continued to largely mirror overall market growth and its worldwide market share was 32% in the quarter, according to Synergy.
Growth at second-ranked Microsoft (NASDAQ: MSFT) outpaced the overall market by over 20 percentage points and its market share has increased by almost three percentage points in the last four quarters, reaching 18%.
Behind the two cloud giants, Google, Alibaba and Tencent are outpacing overall market growth and are gaining market share. All three saw revenues increase by 45% or more year on year.
Time is precious, but news has no time. Sign up today to receive daily free updates in your email box from the Data Economy Newsroom.
Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $29 billion, with trailing twelve-month revenues reaching $104 billion.
Public IaaS and PaaS services account for the bulk of the market and those grew by 39% in Q1. The dominance of the top five providers is even more pronounced in public cloud, as they control over three quarters of the market.
“While COVID-19 is having a devastating impact on communities and economies around the world, indications are that it is having a mildly positive impact on the cloud infrastructure services market,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
“For sure the pandemic is causing some issues for cloud providers, but in uncertain times the public cloud is providing flexibility and a safe haven for enterprises that are struggling to maintain normal operations.
“Cloud provider revenues continue to grow at truly impressive rates, with AWS and Azure in aggregate now having an annual revenue run rate of well over $60 billion.”
Read the latest from the Data Economy Newsroom: