Cloud spending slows, but market still saw a huge boost in 2022
>
New research has found that cloud spending will continue to grow in 2022, despite increasing economic pressures hitting businesses around the world.
In his latest analysis Research group Synergy (opens in new tab) found that the cloud market appears to be less impacted than many other industries as we head into 2023.
It found that growth in cloud spending in the fourth quarter of 2022 was 27% in the US market, compared to an average growth rate of 31% in the previous four quarters.
The largest cloud providers
While things may be slowing, the industry is still accelerating at a respectable pace, the report says, with some of the usual suspects continuing to perform strongly.
Amazon Web Services, long holding the number one position, remained fairly stable. Over the past five years, it has accounted for about 32-34% of the market, and this share will remain unchanged as we enter 2023.
However, Microsoft Azure has experienced the greatest growth over the same period and now occupies 23% of the market (about 10% more than five years ago). Google Cloud continues its slightly less blistering growth, to the point where it now makes up 11% of the stock.
Based on recent Q4 earnings announcements, Synergy expects cloud infrastructure services revenues to exceed $61 billion per quarter. While public IaaS and PaaS services account for the bulk of spending, Amazon, Microsoft, and Google all take individual consumers into account as well.
In the public cloud sector, Synergy reports that these three companies serve 73% of the market, even at a time when PC shipments suffered.
Going forward, the research firm expects the global cloud market to continue growing in all regions of the world.