Monday Morning Impact – August 5
Gartner: Worldwide IaaS Public Cloud Services Revenue Grew in 2023
The worldwide infrastructure as a service (IaaS) market grew 16.2% in 2023, to total $140 billion, up from $120 billion in 2022, according to Gartner, Inc.
“Cloud technologies continue to be a major business disruptor, due in part to the focus on hyperscalers looking to support offerings related to sovereignty, ethics, privacy and sustainability,” said Sid Nag, VP Analyst at Gartner. “This should continue to drive exponential growth into the future with these offerings being spurred by generative AI (GenAI) investments for 2024 and beyond.”
In 2023, the top five IaaS providers accounted for 82% of the market. Amazon continued to lead the worldwide IaaS market with revenue of $54.6 billion and 39% market share, followed by Microsoft with 23% market share (see Table 1). With growth of 26.3% in 2023, Google moved into the third position at 8.2% market share. Alibaba secured the fourth spot with 7.9% of the market.
“As the top hyperscalers continue to grow their IaaS offerings in the shadow of GenAI, we should also see other areas, such as software-as-a-service (SaaS) and platform-as-a-service (PaaS), grow as well. IaaS is the tide that lifts all boats,” said Nag.
GenAI is beginning to have an impact on the growth of cloud markets, although AI-driven growth in 2023 was small.
“Cloud is the foundational and scalable substrate required to make GenAI a reality. The segments that are beginning to see the impacts of GenAI include IaaS, where AI model training is consuming IaaS resources, and SaaS where GenAI capabilities are beginning to be included in SaaS applications,” said Nag. “Capacity demand in public cloud markets has already increased sharply as a result and will continue to do so through 2028. In the near term, AI-driven revenue growth will be small relative to the overall public cloud market.”
Gartner clients can read more in the report entitled, “Market Share: Services, Worldwide, 2023” and “Market Share Analysis: Infrastructure as a Service, Worldwide, 2023.”
Channel Impact®
The data serve to help the channel understand not only the market growth, but also the relative strengths of the key players.
Barracuda signs Deal with AWS to Accelerate Cloud Migration
Barracuda Networks has formed an alliance with Amazon Web Services to help push momentum to the cloud. The agreement commits “significant investments” in marketing development funds, proof of concept funding, and funding for ISV workload migration. Barracuda’s application security, network security, email security, and data protection solutions are already available within AWS Marketplace.
“Creating new incentives for customers to choose Barracuda offerings in AWS Marketplace aligns with our strategy of simplifying the process of accessing and deploying cloud-based security solutions,” said Nicole Napiltonia, VP of Global Alliances at Barracuda. “We are empowering customers to accelerate their digital transformation initiatives by protecting their data and applications so they can leverage the scalability and flexibility of the cloud.”
“We are excited to collaborate with Barracuda Networks to help organizations streamline their migration to the cloud while strengthening their security posture,” said Alan Braun, Director, Technology Partnerships, Americas at AWS. “This agreement underscores our shared commitment to providing customers with scalable solutions that are easy to deploy and manage so they can innovate faster and operate more securely in the cloud.”
Barracuda is a long-standing AWS Partner with multiple AWS validated qualifications, including AWS Public Sector Partner, AWS Marketplace Seller, and AWS GovCloud (US) Delivery Partner.
Channel Impact®
The agreement is expected to provide new flexibility and simplicity for Barracuda’s customers in licensing, procurement, and deployment.
New Cyware Survey Reveals Critical Gaps in Cybersecurity
Cyware, a New York-based provider of threat intelligence management, security orchestration and automation, and cyber fusion solutions, has issued a new report suggesting that an overwhelming majority of organizations recognize the importance of collaboration and information sharing, but most struggle to effectively combine insights across teams and security platforms.
According to the company’s 2024 Threat Intelligence and Collaboration Survey, the disconnect between teams and the siloed use of security tools threaten the delivery of actionable threat intelligence.
Specifically, 91% of respondents said collaboration and information sharing are very important or absolutely crucial for cybersecurity. In addition, 70% believe their organization could improve threat intelligence sharing, with 19% saying they could share significantly more. However, over half of the research respondents (53%) said their organization does not currently utilize an Information Sharing and Analysis Center (ISAC), underlining the shortcomings of the way most security teams approach threat intelligence. Over a quarter (28%) said they were unaware of the existence and role of ISACs altogether. This is despite the proven value ISACs deliver in enabling organizations to manage risk, backed by trusted analysis and effective coordination.
Looking at the emerging role of AI in improving or reducing an organization’s ability to share threat intelligence, 65% thought it would improve their organization’s ability to share information, with over a third (35%) saying the technology is already having an impact.
Channel Impact®
The data support the Cyware value proposition, but also demonstrate opportunities for partners to take their customers to a higher level of security.
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