Global revenue from public cloud services grew 29% to $408.6 billion in 2021, with the top 5 vendors accounting for nearly 40% of the global total

The global market for public cloud services including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service – System Infrastructure (SaaS – SIS) and Software as a Service – Applications, grew 29.0% annually over a year in 2021 with revenue They total $408.6 billion, according to the international data company’s biannual global public cloud (IDC) tracker.

Spending continued to consolidate in 2021, with total revenue of the 5 largest public cloud service providers (Microsoft, Amazon Web Services, Salesforce Inc, Google, and SAP) accounting for nearly 40% of the global total and growing 36.6% over the year. With offerings in all four deployment categories, Microsoft captured the top spot in the overall public cloud services market with a 14.4% share in 2021, followed by Amazon Web Services with 13.7%.

Organizations continued their strong adoption of shared public cloud services in 2021 to closely align IT investments with business outcomes and ensure rapid access to the innovations needed to be a digital-first enterprise.said Rick Villars, group vice president, Worldwide Research at IDC.Over the next few years, leading cloud providers will play a critical role in helping companies weather the current storms of disruption (inflation, supply chain, and geopolitical tensions), but IT teams will also become more focused on bringing greater financial responsibility to the changing spending patterns of public clouds.

While the overall market for public cloud services grew 29.0% in 2021, revenue from foundational cloud services* supporting digital first strategies grew by 38.5%. This highlights the growing reliance of enterprises on a cloud innovation platform built on widespread computing services, data/artificial intelligence services, and application framework services to drive innovation.

IDC anticipates that spending on core cloud services (particularly the IaaS and PaaS components) will continue to grow at a faster rate than the general cloud market as companies leverage the cloud to weather the current disruptions and accelerate their evolution towards digital activism.

The past few years have proven that in difficult times, companies are increasingly relying on cloud services to modernize their operations and deliver more value to their customers.said Dave McCarthy, Vice President of Research, Cloud and Edge Infrastructure Services.This trend is expected to continue as public cloud providers offer more ways to extend cloud services to on-premises data centers and edge locations. These broad deployment options reduce many migration barriers and will facilitate the next wave of cloud adoption.. “

In the world of the digital age, companies serious about long-term competitiveness use the business outcome lens to evaluate strategic technology decisions, fueling the rapidly growing ecosystem of the public cloud market.said Lara Gridin, Director of Research, Platform as a Service, IDC.Cloud providers have demonstrated relentless drive to improve developer productivity and overall application delivery speed, including a focus on a container-first and server-less approach.. “

SaaS applications remain larger and more mature in the public cloud, with revenue in 2021 now reaching $177 billion. High winds from the pandemic continued to support accelerated modernization and replacement of legacy systems in 2021, although business goals remained unchanged. Companies are looking for applications that help them increase their business intelligence, improve their operational efficiency, and make better decisions. Ease of use, ease of implementation and integration, simplified workflow, access to data and analytics, and evaluation time are the primary criteria that drive purchasing decisions, although this vertical position has also steadily increased as a key priorityEric Newmark, Group Vice President and General Manager of SaaS Management, Enterprise Programs, and IDC’s Global Services division said.

While the core cloud services market and the SaaS application market are led by a small number of companies, there are still a large number of companies providing cloud services worldwide. In the core cloud services market, these leaders account for nearly three-quarters of market revenue, with use-case PaaS, data, network, or computing management services. via the cloud. The long tail is most visible in the SaaS application market, where customer focus on specific outcomes accounts for more than two-thirds of spending outside of the Big Five.

Source: IDC

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See also:

Quarterly revenue for public cloud ecosystem jumps 26% to $126 billion in first quarter, with Microsoft, Amazon, Salesforce and Google dominating the market

IBM beat estimates for the fourth quarter and reports hybrid cloud revenue of $6.2 billion, up 16%, and up 20% year-to-date.

The cloud market continues to grow at a rate of 34% annually, and Amazon, Microsoft and Google now account for 65% of the total market, according to Synergy.

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