HomeComputingGlobal cloud spending to grow 33% to $62.3 billion in Q2 2022

Global cloud spending to grow 33% to $62.3 billion in Q2 2022

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Cloud infrastructure services remain in high demand in Q2 2022. Worldwide spending is driven by demand for data analytics and machine learning, data center consolidation, application migration, and cloud-native development and service delivery.

The growing use of industry-specific cloud applications has led to a wide range of horizontal applications within the context of IT transformation. According to the latest data from Canalys, spending was more than $6 billion more than the previous quarter and $15 billion more than in the second quarter of 2021. The top three vendors in Q2 2022, namely Amazon Web Services (AWS), Microsoft Azure and Google Cloud, together accounted for 63% of global spending in Q2 2022, a combined increase of 42%.

Worldwide Cloud Infrastructure Services Q2 2022

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In a global economy with rising and falling inflation and interest rates, demand for cloud services remains high. AWS accounted for 31% of total cloud infrastructure service spending in Q2 2022, becoming the leading cloud service provider. It increased by 33% year-on-year. Azure was the second-largest cloud provider in Q2, with 24% market share after growing 40% year over year. Google Cloud grew by 45% in the last quarter and took 8% of the market.

The battle between leader AWS and rival Microsoft Azure continues to heat up, with Azure closing the gap on its rival. To meet this growth, Microsoft will spend 100 million US dollars. dollars and 1 billion US dollars. highlighted the multi-year track record of major deals in both the above-dollar segment. A diverse go-to-market ecosystem, extensive portfolio, and extensive software partnerships allow Microsoft to be hot on AWS’s heels.

Canalys VP Alex Smith said: “The cloud continues to be a strong growth segment of the technology industry. Opportunities abound for providers large and small, but an interesting battle between AWS and Microsoft continues. The race to invest in demand-driven infrastructure is heating up. Inflation and rising interest rates will test the nerves of corporate CFOs as they create headwinds for spending.”

Both AWS and Microsoft continue to develop infrastructure. AWS plans to open 24 available regions across eight regions, while Microsoft plans to open 10 new regions next year. In both cases, service providers are increasingly investing outside of the United States as they seek to meet global demand and provide low-latency, high-data-sovereignty solutions.

Smith added: “Microsoft has announced that it will extend the depreciation period of its server and network equipment to four to six years, citing improved efficiency in how it uses technology.

“This increases operating income and indicates that Microsoft will be able to sweat more of its capital, which is helpful for its investment cycle as its infrastructure continues to grow. Some services will inevitably run on outdated hardware, so the question will be whether users will experience any negative user experience in the future.”

In addition to capacity investments, software capabilities and partnerships will be important to meet customer demand for cloud applications, especially given the computing needs for highly specialized services across different verticals.

Yi Zhang, research analyst at Canalys, said: “Most companies are looking to move their core services beyond the first step of moving some part of their work to the cloud.

“Top cloud vendors are stepping up partnerships with various software companies to demonstrate value differentiation. Recently, Microsoft has highlighted extended services to move Oracle workloads to Azure, which in turn connect to databases running on Oracle Cloud.”

Canalys defines cloud infrastructure services as Infrastructure and Platform as a Service, either on a dedicated private infrastructure or on a public public infrastructure. This does not directly include the cost of software services, but includes revenue from infrastructure services used to host and operate them.

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