Global spending on cloud infrastructure services grew 34% to $55.9 billion in the first quarter of 2022, with Amazon leading the service provider with a 33% market share.


Global spending on cloud infrastructure services increased 34% to $55.9 billion in the first quarter of 2022 as companies prioritized digitalization strategies to meet market challenges.

According to the latest data from Canalys, spending increased more than $2 billion from the previous quarter and $14 billion higher than the first quarter of 2021. The three major cloud providers benefited from increased adoption and scale, collectively growing 42% year over year and representing 62% of global customer spending.

Business transformation through the cloud has become a priority as organizations grapple with global supply chain issues, cybersecurity threats, and geopolitical instability. Organizations of all sizes and in all sectors are turning to the cloud to ensure resilience and resilience in meeting these challenges. SMEs, in particular, have pushed investments in cloud infrastructure services to support workload migration, data storage services, and cloud-native application development.

At the same time, infrastructure hardware shortages and the threat of further price inflation have prompted many large companies to invest in large-scale, multi-year cloud contracts to secure initial discounts with superstars. All cloud service providers have seen their order books increase exponentially, today reaching several hundred billion dollars worldwide.

This in turn reinforces the importance of cloud markets as a sales channel for security and third-party software, as companies seek to bypass these cloud commitments, driving up infrastructure consumption.

Cloud continues to be a hot market and transformation strategies emphasize digital resilience to meet market challenges today and tomorrowsaid Blake Murray, research analyst at Canalys.To be effective in resiliency planning, customers look to distribution partners who have the technical and consulting skills to help them effectively adopt ultra-redundant cloud services.

Leading cloud partners are ramping up efforts to adopt and employ skills around massive cloud services. Global system integrators, including Accenture, Atos, Deloitte, HCL Technologies, TCS, Kyndryl, Tech Mahindra, and Wipro, implement practices with tens of thousands of cloud engineers and consultants.

This development has also been accompanied by the acquisition of specialists in application development and migration to the cloud, as well as the launch of new cloud service brands. Small consultants, resellers, service providers, and distributors follow similar strategies as mid-market customers and SMBs who also require support for cloud adoption.

The use cases of cloud infrastructure services are increasing, as is the potential complexity, and we see hybrid and multi-cloud deployments becoming popular in the market.said Yi Zhang, Research Analyst at Canalys.Hyperscalers invest in rapidly expanding channels and partners respond to growing opportunities. “

Amazon Web Services (AWS) is the leading provider of cloud services in the first quarter of 2022, accounting for 33% of total spending after growing 37% year-over-year. It continued to expand its global presence, launching 16 localities in the United States and announcing plans to add another 32 localities in 26 countries. AWS has announced the signing of contracts with major customers, including carriers such as T-Systems, Verizon and Telefnica. AWS has also deepened its relationship with Tech Mahindra to operate an automation system to accelerate carrier 5G network adoption.

Microsoft Azure It was the second largest cloud services provider in the first quarter, with a growth of 46% and a market share of 21%. The acceleration of large long-term contracts in the cloud contributed to this growth, with Microsoft doubling the number of Azure contracts by more than $100 million compared to the first quarter of last year. Microsoft is also confirming a new Cloud Partner Program, which was revealed last month and launched in October, to drive Azure’s business through its distribution channel. Amid sweeping (and controversial) changes to the distribution program as part of Microsoft’s New Commercial Experience (NCE), the Cloud Solution Provider program has entered phase two of its rollout, with changes to Azure offerings, new partner credits, and incentives. The company also announced major contracts with global system integrators, including Atos and Fujitsu.

Google Cloud It was the fastest growing among the top three, growing 54% last quarter to represent 8% of the market. The company continues to focus on digital sovereignty, analytics, artificial intelligence, and cybersecurity as key features of GCP, and is working to advance cloud cybersecurity practices through the acquisition of Mandiant, which is due to be completed later in the year. Google Cloud is investing heavily in expanding its regional data centers around the world, while partnering with companies like Mahindra to migrate their data centers to GCP.

Google Cloud also continues to look to distribution partners to reach more customers, increase volume and improve sales efficiency, while striving to reduce operating losses in its cloud business, which reached $931 million in the first three months. The company announced a reorganization to bring together its channel and ecosystem sales teams and pledged to double spending on its partner ecosystem over the next few years, which includes co-marketing and training.

Source: Canalys

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Global spending on full cloud will reach $1.3 trillion by 2025, and a compound annual growth rate (CAGR) of 16.9%, according to the International Data Center (IDC).

Spending on cloud computing infrastructure grew 13.5% year-over-year in the fourth quarter of 2021, to $21.1 billion, according to IDC.

End-user spending on the global public cloud is expected to grow 20.4% in 2022, to nearly $500 billion, from $410.9 billion in 2021, according to Gartner.

Business spending on cloud infrastructure services grew 36% in the fourth quarter of 2021, with Amazon still the number one provider, followed by Microsoft

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