cloud computing / cloud network

IaaS, PaaS Boost Public Cloud Ecosystem Revenue to $126 Billion in Q1

Driven by user acceptance of IaaS (infrastructure-as-a-service) and Easter (platform-as-a-service) services, public cloud ecosystem revenues up 26% to $126 billion in the first quarter of the year, according to new research from Synergy Research Group.

The figure takes into account revenue generated by user spending on public cloud services and infrastructure, as well as vendor spending on the equipment and facilities needed to deliver cloud services.

IaaS, PaaS quarterly revenue up 36%

The biggest growth was seen for IaaS and PaaS, with first quarter revenue for these services growing 36% year over year to total more than $44 billion, Synergy reported. Managed Private Cloud Services, Enterprise SaaS and CDN (content delivery networks) added another $54 billion in service revenue, averaging 21% year-over-year growth.

Hyperscale data center capacity grew 18% to support burgeoning cloud incorporation, driving the data center hardware market. In addition, to meet demand, public cloud providers spent $28 billion building, leasing and equipping their data center infrastructure, a 20% increase.

Companies that were most prominent in the entire public cloud ecosystem were Microsoft, Amazon, Salesforce and Google. Adobe, Cisco, Dell, IBM, Oracle, SAP and VMware also contributed significantly to revenue growth, accounting for 60% of all public cloud-related revenue, according to Synergy’s findings.

The trend for US-based companies to lead the market was also confirmed in all services and infrastructure markets, with Chinese companies making up the second largest segment.

Public cloud revenue expected to double in 3-4 years

Revenues from public cloud ecosystems are expected to double in the next three to four years, John Dinsdale, a principal analyst at Synergy Research Group, said in a blog post. As a result, cloud providers will have to increase the footprint of hyperscale data centers and generate more raw computing power, which in turn would drive the data center hardware and software markets, Dinsdale said.

“The competition will certainly be tough, but in the cloud ecosystem there will be a bright future for companies that bring the right products to market in a timely manner,” he said.

Copyright © 2022 IDG Communications, Inc.

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