According to Canalys, the second quarter saw a 33% year-over-year increase in spending on cloud infrastructure services, driven by enterprise demand for data analytics, machine learning, data center consolidation, and the creation of cloud-native apps.
The Singapore-based market research company claimed that its most recent study on cloud expenditure, which was published on Tuesday, demonstrates that demand for cloud services is still high even if the global economy is experiencing recession, rising interest rates, and inflation.
According to Canalys, Google, Microsoft, and Amazon together accounted for nearly two out of every three dollars spent on cloud infrastructure globally during the previous quarter. IaaS (infrastructure-as-a-service) and PaaS (platform-as-a-service) are two terms used by the company to describe cloud infrastructure services that are offered through either private or public hosting environments.
It does not include revenue from direct sales of SaaS (software-as-a-service) applications, but it does include revenue from infrastructure services needed to host and run those applications.
In the second quarter of 2022, AWS alone accounted for almost 1/3 of the $62.3 billion in total worldwide cloud infrastructure revenue, or $19.3 billion, showing a 33% year-over-year rise in Amazon\'s numbers. A 40% annual growth rate put Azure in second position with 24% of the market, while a 45% growth rate put Google Cloud in third with 8% of the market.
According to Canalys, Azure\'s growth rate indicates that Microsoft has kept up the pressure on Amazon for market dominance. According to Alex Smith, a vice president at the research firm, Microsoft\'s record number of significant sales worth $100 million and $1 billion are the result of a broad product portfolio and close integration with software partners.
In a statement releasing Canalys\' findings, he stated that "although opportunities abound for providers large and small, the exciting struggle remains right at the top between AWS and Microsoft."
"As both inflation and rising interest rates generate cost headwinds, the race to invest in infrastructure to keep up with demand will be strong and test the companies\' CFOs\' nerves."
Infrastructure is built out by cloud providers.
Despite these challenges, the researchers found that Amazon and Microsoft have both continued to aggressively expand their capacity. Microsoft recently announced the availability of 10 new cloud regions, while Amazon announced the availability of eight, divided into 24 new availability zones, over the next year.
Yi Zhang, a research analyst at Canalys, predicts that demand will continue to rise as businesses relocate more and more essential components of their infrastructure there. According to a statement he made, "the majority of enterprises have moved beyond the initial step of shifting a portion of their workloads to the cloud and are looking at migrating important services." "The leading cloud vendors are stepping up their collaborations with several software firms to show off a unique value offer. Microsoft has recently highlighted improved services to move more Oracle workloads to Azure, which are then connected to databases operating in Oracle Cloud.
S:cio.com
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