Global cloud infrastructure market grows as digital transformation accelerates

Image used for representation purpose.   | Photo Credit: Getty Images

The global cloud infrastructure market grew in the June ending quarter, driven by workload migration and cloud-native application development.

(Subscribe to our Today's Cache newsletter for a quick snapshot of top 5 tech stories. Click here to subscribe for free.)

Worldwide cloud infrastructure services spending increased 36% to $47 billion in the second quarter of 2021, compared with the previous year, according to a report by market analyst firm Canalys.

Also Read | Microsoft announces Windows 365, a computer that runs on its cloud

“The pandemic exposed many economic and operational fragilities over the last 18-months. Organisations across all verticals responded and focused on business resiliency planning, which expedited digital transformation projects and increased cloud consumption,” the report noted.

Amazon Web Services (AWS), Microsoft Azure, and Google Cloud retained the top three spots and accounted for 61% of total spending in the June ending quarter.

Market leader, AWS, grew 37% on an annual basis, taking 31% of the cloud infrastructure services spending in the second quarter of 2021.

Also Read | Why Microsoft lost $10 bln JEDI contract?

Microsoft Azure, the second-largest cloud service provider, expanded 51% in the June ending quarter, capturing a 22% market share.

Google’s cloud computing services grew 66% in the second quarter of 2021, taking an 8% market share.

“This market continues to be a runaway success story for Amazon, Microsoft, Google and some other cloud providers. You would not normally expect to see growth rates actually increasing in such a huge and rapidly developing market,” John Dinsdale, a Chief Analyst at Synergy Research Group, said in a statement, and added, that the top three in aggregate are typically investing over $25 billion in capex per quarter.

Also Read | Google Cloud announces second ‘Cloud Region’ in India

Google Cloud’s third spot was closely followed by Jack Ma’s Alibaba Cloud, while other cloud service providers, including IBM, Salesforce, Tencent, Oracle, and Baidu showed above-average growth in the quarter.

“There remains a wealth of opportunity for smaller, more focused cloud providers, but it can be hard to look away from the eye-popping numbers coming out of the big three,” Dinsdale, said.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 24, 2021 9:10:11 PM |

Next Story