Report: Cloud Service Spending Still Growing Almost 40 Percent per Year
New data from Synergy Research says that Q2 spend on cloud infrastructure services jumped 39 percent from the second quarter of 2018. However, this growth rate is nudging downward each quarter, reflecting the increasingly massive scale of the market. In terms of actual dollars spent on cloud services, the market grew by over $1.6 billion from the previous quarter, making it the second highest incremental increase ever achieved.
Amazon growth kept pace with the market and it maintained its 33% worldwide market share. A group of four cloud providers continue to outpace the market and to grow their market share – Microsoft, Google, Alibaba and Tencent.
With most of the major cloud providers having now released their earnings data for Q2, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were almost $23 billion, with revenues for the last four quarters now reaching well over $80 billion. Public IaaS and PaaS services account for the bulk of the market, growing by 42% in Q2. In public cloud the dominance of the top five providers is even more pronounced, as they control over three quarters of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.
“Revenues from cloud infrastructure services have almost hit the $100 billion per year run rate, and there is no end in sight to strong growth,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “When quarterly spend on cloud services is mapped out for the last twelve quarters, we are pretty much looking at a steep, straight line growth profile.”
Synergy Research Group provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region.
The report empirically demonstrates what many people in the partner community have already recognized: that there is a huge shift to cloud computing, and partners are rapidly moving in that direction to meet the needs of the marketplace.
Google Cloud and VMware Extend Strategic Partnership
Google Cloud and VMware have jointly rolled out “Google Cloud VMware Solution by CloudSimple,” a new service that will allow organizations to run their VMware workloads in Google Cloud Platform (GCP). The solution will leverage VMware Cloud Foundation infrastructure software, deployed on GCP and designed and operated by CloudSimple, a VMware Cloud Verified partner.
The service includes VMware vSphere, vSAN and NSX deployed in GCP and operated by CloudSimple. Google Cloud will provide the first line of support, working with CloudSimple to help enable customers to receive a streamlined product support experience, and their business-critical applications are supported with SLAs that enterprise customers need.
“With VMware on Google Cloud Platform, customers will be able to leverage all of the familiarity of VMware tools and training, and protect their investments, as they execute on their cloud strategies and rapidly bring new services to market and operate them seamlessly and more securely across a hybrid cloud environment,” said Sanjay Poonen, chief operating officer, customer operations at VMware.
This announcement builds on multiple existing integrations and collaborations including integrations with VMware NSX Service Mesh and VMware SD-WAN; Google Cloud’s multi-cloud solution, Anthos, on VMware vSphere, vSAN, and NSX: and the ability to manage Google Cloud resources from within customers’ VMware vRealize Automation environments.
Arrow Teams With Adlink and Microsoft for Faster Deployment of Industrial IoT
Arrow Electronics has joined forces with Adlink and Microsoft to launch an IoT machine condition monitoring solution designed to help industrial customers reduce costly unplanned production shutdowns.
The solution integrates data collection, vibration analysis algorithms, computation and network connection tasking in a single edge device. It enables preventative maintenance of machinery, tooling, plant equipment and automation equipment, with fast and simple setup and configuration.
To build and deploy the MCM-100, Arrow worked with Microsoft’s Azure IoT Central, an IoT app platform that supports operation, management, security and scaling of IoT solutions. Arrow integrated the hardware and cloud-based software to provide a complete, repeatable solution utilizing the platforms from Adlink and Microsoft.
“Manufacturing companies need to get to proof of value in a fast, safe and cost-effective way,” said Ashish Parikh, vice president of IoT platforms and solutions at Arrow. “With the help of Microsoft’s platform, Arrow was able to provide additional services and resources to complement and connect Adlink’s industrial Edge IoT solution so customers can reliably analyze and visualize real-time event data in the Azure Cloud.”
The new offering brings together both hardware and software to deliver market-ready solutions designed to fit companies’ individual needs.