![]() ![]() ![]() “If you have this one area of IT that is growing far out of scale, it sticks out like a sore thumb,” said Park. ![]() So an increase of 50% annually is significant. Companies have raced to add capabilities, and vendors have acceded with new features.Ĭompanies have traditionally benchmarked IT spend at 3% of revenue and planned for, at most, 5% overall increase in tech spending each year, Park said. IaaS and PaaS expenses have increased almost 50% per year globally since 2019, according to an Amalgam Insights report, co-authored by Park. The cost of cloudĬloud is not a cheap solution. “The cloud vendors are going to be almost like wartime vendors over the next year,” Park said. Microsoft’s Azure, ranked second with a 24% market share, posted quarterly revenue of more than $25 billion for its cloud division, and Alphabet’s Google Cloud, which has 8% of the cloud market, yielded $6.3 billion in revenue.Ĭloud business boomed during the pandemic, driving revenues for the industry’s three biggest players, said Glenn O’Donnell, VP research director at the research and advisory firm Forrester.įueled by companies reluctant to greenlight large capital expenditures and eager to reap technology efficiency benefits in an uncertain economy, the boom should continue into 2023, with cloud spend growing at a rate of 20%, according to Gartner’s latest projections.Ĭloud providers, Park said, will profit as companies redirect spending from large-scale on-premises technology builds to cloud. As markets braced for the second consecutive quarter of GDP contraction and absorbed a 75 basis-point interest rate bump by the Fed, the big three US cloud service providers came through with quarterly gains.Īmazon reported revenue of nearly $20 billion for AWS, which commanded 31% of total cloud infrastructure services in Q2, according to a Canalys report released Monday. ![]()
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