With remote working and distance learning not going anywhere, and the demand for industry-specific cloud applications on the rise, cloud infrastructure service providers are rubbing their hands together.
A new report from analyst firm Canalys says global cloud spending hit $49.4 billion in Q3 2021, rising by $12.9 billion year-on year, and $2.4 billion since last quarter.
According to Canalys, digital transformation is behind the sharp uptick in cloud spending, forced upon many organizations by the Covid-19 pandemic.
The Big Three of the cloud infrastructure world - Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) - continued on their path of sustained growth. AWS accounted for almost a third (32 percent) of the total cloud infrastructure services spend for the quarter, growing 39 percent year-on-year.
The world’s second-largest provider, Azure, held a 21 percent market share in Q3 2021, growing more than 50 percent for the fifth consecutive quarter. Meanwhile, GCP grew 54 percent and how holds 8 percent of the market.
“Overall compute demand is out-growing chip manufacturing capabilities, and infrastructure expansion may become limited for the cloud service providers,” said Blake Murray, Research Analyst at Canalys.
“Besides managing supply chains to the best of their abilities, the providers building an advantage are focused on developing their go-to-market channels along with their product portfolios to catch up with an increasingly wide variety of customer use cases that has fueled demand since the start of the pandemic.”