2019 Cloud Infra Spending: 37% YoY Growth To USD 107 Bn

By Veritis

Cloud Infra Spending

Cloud computing industry has grown by leaps and bounds over the decade because of various reasons.

That can cost savings, reduced hardware burden, simplified solutions, enhanced monitoring, on-demand services and more it offers.

Because of these reasons, there has been a tremendous rise in cloud spending.

A latest report revealed that organizations globally have spent around USD 107 billion on cloud infrastructure in 2019, showing a 37 percent rise year-on-year.

The digital transformation drive has taken the cloud demand to next level, reflecting in the rise in overall spending on Infrastructure as a Service (IaaS), investment on server, storage and other cloud-dependent services.

Continuing its pace, AWS held one-third share of 2019’s overall cloud spending.

Experts feel that the cloud infrastructure spending trend will continue to rise over the next five years, to reach an estimated USD 284 billion by 2024.

Chief analyst at Canalys, Alastair Edwards attributes this rise of cloud infrastructure spending to the increasing number of new entrants to the technology industry.

“Organizations across all industries, from financial services to healthcare, are transitioning to being technology providers. Many are using a combination of multi-clouds and hybrid IT models, recognizing the strengths of each cloud service provider and the different compute operating environments needed for specific types of workloads,” says Edwards.

Cloud Infrastructure Spending, By Provider

Global Cloud Spending

AWS held 37% share of the overall cloud infrastructure spending in 2019, accumulating USD 34.6 billion in revenue, up from USD 25.4 billion year-on-year.

Cloud Service Provider  2019 (Billion) 2019 Market Share 2018 (Billion) 2018 Market Share Annual Growth
AWS $34.6 32.3% $25.4 32.7% 36%
Microsoft Azure $18.1 16.9% $11 14.2% 63.9%
Google Cloud $6.2 5.8% $3.3 4.2% 87.8%
Alibaba Cloud $5.2 4.9% $3.2 4.1% 63.8%
Others $43 40.1% $34.9 44.8% 23.3%
Total $107.1 100% $77.8 100% 37.6%

Amazon’s market share also expanded from 32.7 percent in 2018 to 34.6 percent in 2019, at an annual growth of 36 percent.

Microsoft’s Azure stood second accumulating USD 18.1 billion in revenues, up from USD 11 billion in 2018.

Google Cloud secured the third position with USD 6.2 billion revenue, above Alibaba Cloud and others, a two-fold rise from USD 3.3 billion in 2018. GCP saw a whopping 87.8 percent rise in annual growth.

“The role of channel partners will become more important, as cloud use increases, in terms of defining application strategies, integration into business processes, optimizing user experiences, governance and compliance, as well as securing data and workloads,” says Edwards.

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