 Photo by Matthew Manuel on Unsplash |
Based on Canalys data, worldwide spending on cloud infrastructure in 2020 amounted to $142bn. Compared to 2019’s $107bn, that was a 33% year-over-year (YoY) increase.
Top five cloud service providers accounted for 58% market share in Q4 2020
In Q1 2020, Microsoft generated $13.3bn, increasing to $14.3bn in Q2 2020, $15.2bn in Q3 2020 and $16.7bn in Q4 2020.
Comparatively, AWS cloud revenue was $10.22bn in Q1 2020, rising to $10.81bn in Q2 2020, $11.6bn in Q3 2020 and $12.74bn in Q4 2020. For the full year, Amazon made $45.4bn and captured the second spot.
Google Cloud moved to the third spot, overtaking Salesforce, thanks to its $13bn in annual revenue. Cumulatively, AWS and Google Cloud raked in $58.4bn during the year, lower than Microsoft’s tally.
Q4 2020 was particularly impressive for the market as a whole, with global spending soaring by 32% YoY to $39.9bn. Compared to Q3 2020, there was a 10% quarter-over-quarter (QoQ) increase. It was the largest quarterly growth on record in dollar terms.
During the quarter, Microsoft Azure, AWS and Google Cloud accounted for a 58% share of the market’s revenue. According to Synergy Group, the top five service providers accounted for an 80% share of the market in 2020. Excluding Microsoft and AWS however, the market still grew at a 30% rate, highlighting opportunities even for smaller players.
