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Despite obvious economic challenges, new Synergy Research Group figures show a positively upward trend in the amounts being spent by enterprises on their cloud infrastructure services.
As of the second quarter of 2023, enterprise spending on cloud infrastructure services was $64.8 billion worldwide, up by $10 billion compared with the same period of 2022 and the third successive quarter of growth amid restricting budgets.
The figures also reflect positively on Microsoft and Google, which have both been steadily growing in market share over the years.
AWS still accounts for most cloud services
Little change was seen in terms of Amazon’s market share, with its cloud division accounting for a touch under one-third of cloud spend. Microsoft and Google measured 22% and 11% respectively, taking the three leaders’ combined share to almost two-thirds (65%).
Synergy pointed out that the three leaders’ dominance is even more pronounced in the public cloud sector, where they account for 72% of the market.
At the same time, a five-year window reveals that IBM’s share has continued to decline, while Alibaba has, too, seen a drop despite a spike in 2021.
The analysts blame “macroeconomic pressures, some belt-tightening by enterprises, local market issues in China, and… the law of large numbers” for the reduction in growth rates recently, however there could be other factors at play, too.
Recent months, particularly the first half of 2023, have seen many enterprises looking to (and now able to) create their own AI tools. While many opt for -aaS approaches, others are keen to acquire their own hardware including industry-leading and expensive processors, which may have seen cloud spend take a back seat.
Looking ahead, Synergy sees current “short-term” challenges remedying themselves and growth continuing for some time yet.
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