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Global Spending On Cloud Services Up 34%

Global spending on cloud services has reached a record high of $31 billion in Q1 2020, representing an increase of 34%, according to tech market research firm Canalys. This has been driven by workplaces all over the world operating remotely during the COVID-19 pandemic.

In their earnings reports for Q1 2020, Google, Microsoft and Amazon Web Services (AWS) all noted a surge in growth for their cloud services.

AWS remained the leader for cloud services, accounting for 32% of the total market. In Q1 2020 AWS’ net sales increased by 32.8% year-on-year, reaching $10.2 billion. AWS is now available in 24 geographic regions, and plans to open three more in the next quarter.

Microsoft’s Azure now accounts for 17% of the cloud services market, after increasing its sales by a staggering 59%.

Google Cloud remained in third place, closely followed by China’s Alibaba Cloud – with both holding roughly 6% of market share.

Source: Canalys

“This is uncharted territory for cloud service providers, giving a boost to consumption but creating new and often challenging customer dynamics,” said Alastair Edwards, Chief Analyst at Canalys.

To cope with this higher demand, the world’s major cloud providers are rapidly bringing more data centres online. Microsoft has an emergency plan underway to add server capacity, AWS opened two new data centre regions in April and Google Cloud has plans to open four cloud data centres.

“Many organisations have turned to the public cloud for its burst capabilities to meet a sudden spike in use,” Edwards said. “Platforms such as Zoom would not have been able to operate without the flexible infrastructure provided by the major cloud providers.”

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