Global cloud market sees another huge spending spree as AI demand continues

6 August 2024, 14:19 published

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Cloud infrastructure spending is closing in on $80 billion spent per quarter, according to new figures that appear to confirm that Year-on-Year growth rate in the sector has now been north of 20% for three consecutive quarters.

Findings from Synergy Research (via The Register) also claim the total expenditure in the cloud market over the last twelve months totalled $297 billion.

Amazon Web Services, Microsoft and Google make up two-thirds of the cloud infrastructure market worldwide, and 73% of the public cloud market, with The Register noting all three regularly trade places for the top spot.

In Q2 2024, it’s AWS with a noticeable lead, with 32% market share – a 1% rise over the previous quarter. Microsoft Azure is in second place with 23%, a two percent decrease versus Q1.

Google, though a firm third place, is maintaining its trend of slow gains on AWS, this time from a two percent rise to 13% share.

Outside of the top three, Synergy has found that larger gains are happening, with Alibaba seeing a 4% increase in share and Oracle and Salesforce three.

IBM, Tencent and Huawei battle it out on 2%, while Baidi, Fujitsu and VMware are among those with growth rounding up to 1%.

In a statement reported by The Register, Synergy Research Group Chief Analyst John Dinsdale did say that cloud growth was normalising, after heady bumps in the wake of artificial intelligence arising as a cottage industry.

Giving some idea as to the sheer scale of the market, Dinsdale said that “Oracle is now starting to separate itself to become a top five player”, but also that “in this market Google is almost five times the size of Oracle, while Amazon is almost three times the size of Google,” he said.