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The cloud Infrastructure-as-a-Service (IaaS) market continues to boom

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(Image credit: Shutterstock / Blackboard)

The cloud Infrastructure-as-a-Service (IaaS) market has enjoyed another quarter of strong growth, as businesses continue to migrate their workflows and build more cloud-native applications.

This is according to a new report from analyst firm Canalys, which states that spending rose 36 percent for the quarter, hitting $47 billion. The same report asserts that expenditure was $5 billion higher than in the previous quarter, and more than $12 billion higher compared to the same time last year.

The post-pandemic recovery stage is at the very heart of this IaaS boom, the report further states, with organizations across all verticals now speeding up their digital transformation projects and increasing their cloud usage.

The big three in the cloud industry - Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), made up almost two-thirds (61 percent) of the total spend for the quarter. AWS accounted for almost a third (31 percent), achieving 37 percent growth year-on-year.

Microsoft Azure was the second-largest service provider for the quarter, holding on to 22 percent of the market and growing 51 percent, while Google Cloud now has an eight percent market share after growing 66 percent for the quarter.

While the technology is poised for more growth, extreme weather events and natural disasters that occurred in the first half of the year heightened the awareness of sustainable business and environmental-friendly operations, Canalys added.

“Awareness of the energy use and carbon emissions from digital services delivered from data centers operated by cloud service providers is growing. But the leading providers are also at the forefront of environmental resiliency efforts,” said Canalys Research Analyst Blake Murray. 

“The best practices and technology utilized by these companies will filter to rest of the industry, while customers will increasingly use cloud services to relieve some of their environmental responsibilities and meet sustainability goals.”