AWS continues to rule the roost in the cloud market

  • 09/11/2020

Global spending on cloud infrastructure services grew by a huge 33 percent in the third quarter of 2020, compared to the same period last year. This is according to a new report from analyst firm Canalys, which asserts that the rise is a direct consequence of the Covid-19 pandemic.

In Q3, businesses all over the world spent $36.5 billion on cloud infrastructure services, up by $2.0 billion compared to Q2 and by $9.0 billion over Q3 2019.

According to Canalys, spending grew across all sectors and cloud is likely to remain “vital” going forward, as many countries around the world reintroduce strict lockdown measures.

Market leader Amazon Web Services (AWS) remained the number one vendor in the quarter, expanding its revenue by $2.6 billion compared to Q3 2019. The company also generated more revenue than the next three largest cloud service providers combined.

Microsoft Azure grew 48 percent year-on-year, capturing 19 percent of the market (up from 17 percent a year ago), while Google Cloud remained the third biggest provider with a seven percent share.

“But as organizations adjust to the new normal, these longer-term projects are accelerating again. Some organizations are taking a cost-driven approach by reducing capital expenditure on their own data centers and cutting management costs from outsourcing contracts. Others are taking a transformational approach, developing new cloud-native applications and business models. But they will all have to be more measured and cost-conscious, requiring greater control and visibility of spend, while also deciding not to migrate every workload.”
Canalys expects multi-cloud and hybrid IT to continue gathering momentum as businesses start to assess the optimal deployment for use cases such as autonomous vehicles, industrial robotics and augmented and virtual reality solutions.
“Increased consumption has driven cloud infrastructure services spend this year, though some larger and more complex deals were delayed due to uncertainty caused by the pandemic,” said Matthew Ball, Chief Analyst at Canalys.