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Cloud spending surged in Q2 2020

(Image credit: Image Credit: Everything Possible / Shutterstock)

The global cloud computing market saw a huge growth in the second quarter of 2020 as much of the business world pivoted towards lockdown.

Figures from analyst firm Canalys found that cloud infrastructure spending saw a huge rise in the period as companies across the globe looked to shore up their remote working capabilities.

Canalys' quarterly report claimed that global cloud infrastructure spending grew 31% to $34.6 billion in Q2 2020.

This marked the largest expansion ever seen by the firm, with the Q2 2020 total over $3.5 billion higher than Q1 2020 and more than $8 billion more than the same period last year.

The report put Amazon Web Services (AWS) on top spot as the leading cloud service provider in Q2 2020, accounting for 31% share of total spend. Microsoft Azure reached 20% market share for the first time after a strong end to its fiscal year, with Google Cloud remaining in third place on 6% of the market, closely followed by Alibaba Cloud with 5%.

“Cloud-based services were pivotal in enabling emergency continuity plans designed to maintain virtual operations during lockdown,” said Canalys Chief Analyst, Matthew Ball. 

“These will also prove to be critical in the next phase of the response to COVID-19, as economies gradually re-open. In addition to supporting continued remote working and distance learning, cloud-based services will underpin the deployment of new digital workflows such as online booking and ordering systems as well as other contactless service engagements. It will also be part of solutions to make workplaces COVID-secure by monitoring occupancy levels and footfalls as well as contact-tracing to help reopen large offices and education facilities with confidence. 

"Demand for cloud-based services will remain strong, as organizations accelerate their digital transformation initiatives over the next 12-months to capitalize on new emerging opportunities.”

However Canalys noted that growth rates continued to be constrained due to a slowdown in large projects as the global economic forecast weakened, meaning existing IT assets will need to now last longer. The firm noted that business continuity has now emerged as a top priority for many organizations, and, "the need for robust plans to enable operations to continue no matter the situation has never been more crucial."