Worldwide cloud services revenues amount to 315.5 billion dollars. This is over 19% more than the previous year.
IDC (International Data Corporation) estimates that by the end of 2023, these revenues will reach 663 billion dollars – a 20% increase compared to 2022. The same trend is expected to continue next year, with forecasts predicting a similar growth. In turn, by 2027, cloud revenues are projected to reach 1.34 trillion dollars.
What influences this result? Do entrepreneurs really eagerly utilize cloud services?
It turns out that they do. And artificial intelligence has a particularly significant impact on this. As Lara Greden, the Director of Research, Platform as a Service at IDC, emphasizes – the position of cloud technologies and public cloud service providers is evident, considering the strengthening presence of AI.
Which cloud technologies are growing the fastest?
- SaaS, or Software as a Service, reached its podium in the first half of the year, constituting 45% of cloud revenues;
- IaaS, Infrastructure as a Service, accounted for 20.4% of all revenues, making it the second strongest category;
- And although PaaS (Platform as a Service) and SaaS-SIS (Software Infrastructure System) achieved 18% and 16.9% of total revenues, respectively, they turned out to be the categories with the fastest year-over-year growth.
Who is the pioneer among cloud service providers?
It won’t be a surprise. IDC data indicates that Salesforce, Google, AWS, Oracle, Microsoft, and Amazon Web Services account for 41% of all global cloud revenues. Microsoft takes the top position with a 17.1% market share, closely followed by Amazon Web Services at 12.6%. Meanwhile, Precedence Research data suggests that AWS is the clear leader with a 34% market share.
Interestingly, the energy sector also plans to increase spending on the cloud
And one could say that it is a turning point because these companies were reluctant to adopt cloud solutions. Various factors contributed to this, but the main reason was the concern about system reliability and issues related to downtime. Fortunately, this approach is slowly changing, and energy companies are beginning to transition to cloud solutions.
Although a full transition to cloud computing is relatively rare in this sector, it is a fact that hybrid cloud is gaining popularity in this case. As indicated by Łukasz Jęczmiński, an expert from NTT DATA, this model ensures companies control over critical data while allowing them to benefit from the advantages of the public cloud.
It’s worth noting that energy companies in the USA accounted for a 44% market share in the cloud last year. Europe reached a 26% share, and now it’s time for Asia and the Pacific, where strong investment growth is projected.
In total, the global cloud budget is estimated to reach 529 billion dollars by the end of this year. According to Precedence Research data, cloud expenses are expected to reach 1.45 trillion dollars in 2025, doubling by 2031.