Public Cloud services and infrastructure market Revenues reached $126 Billion in Q1 2022, a 26 per cent jump from Q1 2021, according to a new report.
The biggest growth was seen in infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) and the first quarter revenue from these services grew by 36 per cent to reach over $44 billion, revealed new data from Synergy Research Group.
In the other main service segments, managed private cloud services, enterprise software-as-a-service (SaaS) and CDN added another $54 billion in service revenues, having grown by an average 21 per cent from last year.
“Public cloud-related markets are typically growing at rates ranging from 15 per cent to 40 per cent per year, with PaaS and IaaS leading the charge,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
“Looking out over the next five years, the growth rates will inevitably tail off as these markets become ever-more massive, but we are still forecasting annual growth rates that are generally in the 10 to 30 per cent range,” Dinsdale added.
In order to support both these and other digital services, public cloud providers spent $28 billion on building, leasing and equipping their data centre infrastructure, which was up 20 per cent per cent from Q1 of last year.
Across the whole public cloud ecosystem, companies that featured the most prominently were Microsoft, Amazon, Salesforce and Google. Other major players included Adobe, Alibaba, Cisco, Dell, Digital Realty, IBM, Inspur, Oracle, SAP and VMware. Together, these companies accounted for 60 per cent of all public cloud-related revenues.
“To enable cloud service markets to keep up with demand by doubling in size in the next 3-4 years, the major cloud providers need an ever larger footprint of hyperscale data centers and more raw computing power, which then drives the markets for data center hardware and software,” said Dinsdale.