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.

Channel Impact^®
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.