Cloud Computing Industry Overview
According to the big three — Amazon, Microsoft, and Google’s latest earnings, we learned that the cloud infrastructure market topped $57bn for the quarter, up $11bn over the same period last year. This adds up to 24% growth. It might not be the growth we are used to seeing from the cloud industry market, but at a time of economic instability, it continues to perform remarkably well.
Still, it is a step back from the days when we saw growth steadily in its 30s. It’s even down from the previous quarter when the market grew 29%. So, it’s fair to say that growth is slowing in an area which has seen explosive expansion over the last several years.
But as the law of large numbers states, that as a market size increases, growth decreases. Despite facing major different obstacles such as strengthening US dollar and a shrinking market in China, the worldwide market still expanded by 24% in 2022 from last year. The U.S. and Western Europe still dominate the cloud industry. When combined, these two regions account for 82% of the world’s cloud Industry. This chart shows cloud adoption by country and region according to Gartner:
Over 50% of SME’s technology budget will go to cloud spend in 2023. SMEs had spent 47% of their technology budgets on cloud services in 2022, a 67% increase from 2021 to 2022. In 2023, their cloud investment will surpass 50% of their tech budget. Cloud spending to reach nearly $600bn in 2023. In 2023, Gartner estimates global end-user spending on public clouds will reach over $599 billion, up from $421 billion in 2021 and nearly $500 billion in 2022.
Competition between Azure and AWS is rife. It is found that 53% of enterprise users on Azure spend over $1.2 million each year vs. 52% on AWS.
– Manav Kumar Crsipidea Analyst
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