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Global cloud infrastructure market grows on continued digital transformation

Amazon Web Services, Microsoft Azure, and Google Cloud retained the top three spots and accounted for 58% of total spending in the March ending quarter.

May 08, 2021 10:00 am | Updated May 10, 2021 04:54 pm IST

Market leader, AWS, grew 32% on an annual basis, taking 32% of the cloud infrastructure services spending in the first quarter of 2021.

Market leader, AWS, grew 32% on an annual basis, taking 32% of the cloud infrastructure services spending in the first quarter of 2021.

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The global cloud infrastructure market grew in the March ending quarter, driven by continued digital transformation with organisations adjusting to new ways of working.

Worldwide cloud infrastructure services spending increased 35% to $41.8 billion in the first quarter of 2021, compared with the previous year, according to a report by market analyst firm Canalys.

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“Though 2020 saw large-scale cloud infrastructure spending, most enterprise workloads have not yet transitioned to the cloud,” Blake Murray, Research Analyst at Canalys said. “Migration and cloud spend will continue as customer confidence rises during 2021. Large projects that were postponed last year will resurface, while new use cases will expand the addressable market.”

Amazon Web Services (AWS), Microsoft Azure, and Google Cloud retained the top three spots and accounted for 58% of total spending in the March ending quarter.

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Market leader, AWS, grew 32% on an annual basis, taking 32% of the cloud infrastructure services spending in the first quarter of 2021.

Microsoft Azure expanded 50% for the third straight quarter, capturing 19% market share in the March ending quarter.

“They [Amazon and Microsoft] continue to invest billions of dollars every quarter in expanding their global data centre footprint, while at the same time enhancing their cloud service portfolios,” John Dinsdale, a Chief Analyst at Synergy Research Group, said in a statement. “These two don’t have to spend too much time looking in their rear-view mirrors and worrying about the competition.”

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Google Cloud maintained its third spot closely followed by Jack Ma’s Alibaba Cloud. Google’s cloud computing services grew 56% in the first quarter of 2021, taking a 7% market share.

Other growing cloud service providers, include IBM, Salesforce, Tencent, Oracle, Baidu, NTT, SAP and Fujitsu.

“Taking Amazon and Microsoft out of the picture, the remaining market is generating over $18 billion in quarterly revenues and growing at over 30% per year,” Dinsdale, said. “Cloud providers that focus on specific regions, services or user groups can target several years of strong growth.”

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