The earnings news over the past couple of weeks makes this news a bit anti-climatic, but analyst firm Canalys reported last Thursday what we could all figure out — spending on cloud infrastructure is growing at a rapid rate.
According to the firm, “total spending grew 34% to US$53.5 billion, up US$13.6 billion on the same period a year ago.”
They further report that industry-specific applications (clearly part of the reason for Oracle’s recent acquisition of Cerner) and a combination of continued “workload migration and cloud-native application development as part of digital transformation projects” are responsible for the growth.
Interestingly, the report specifically calls out investments in the so-called metaverse as a source for further near-term growth. While Google GCP still only represents 9% of the market (compared to Amazon AWS and Microsoft Azure’s 33% and 22% market share, respectively), it was the growth winner expanding by 63% (compared to 40% and 46% for AWS and Azure).
Image source: Canalys.