{"id":5217,"date":"2023-07-23T10:44:00","date_gmt":"2023-07-23T10:44:00","guid":{"rendered":"https:\/\/cobweb.com\/ae\/?p=5217"},"modified":"2023-08-02T07:11:47","modified_gmt":"2023-08-02T07:11:47","slug":"the-increasing-case-of-cloud-revenue","status":"publish","type":"post","link":"https:\/\/cobweb.com\/ae\/content-hub\/blogs\/the-increasing-case-of-cloud-revenue\/","title":{"rendered":"Cloud Revenue Rises- IDC study"},"content":{"rendered":"\n
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Half a Trillion Dollars: The annual revenue for public cloud services.<\/h1>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n
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According to recent data from research firm IDC, the global revenue generated by public cloud services surpassed the US$500 billion mark in 2022.<\/p>\n\n\n\n

IDC’s research revealed that the actual figure reached US$545.8 billion, representing a substantial 22.9% increase compared to the previous year. The growth was even more pronounced in foundational cloud services, which include infrastructure, platform, and system infrastructure software delivered as services. These foundational services experienced a remarkable 28.8% year-on-year growth.<\/p>\n\n\n\n

IDC attributes this surge in spending to organizations’ increasing reliance on data and artificial intelligence (AI) services, distributed computing, and app frameworks. Investments in infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) are expected to continue outpacing the overall public cloud market. Cloud providers are responding to this trend by deploying high-performance infrastructure.<\/p>\n\n\n\n

Dave McCarthy, IDC’s research vice president, noted that these investments have two significant implications. First, they enable the migration of enterprise applications that were previously hosted on-premises. Second, they establish the foundation for the rapid deployment of scalable AI software. These investments present ample growth opportunities for the market.<\/p>\n\n\n\n

IDC’s data also highlighted a consolidation within the public cloud market. Although the top five providers account for less than half of the market, their revenue grew at a faster rate than the market, experiencing a 27.3% increase last year.<\/p>\n\n\n\n

IDC’s information places Microsoft as the largest public cloud provider globally, with a 16.8% market share, closely followed by AWS (Amazon Web Services) at 13.5%. Salesforce, Google, and Oracle round out the top five players.<\/p>\n\n\n\n

Generative AI is expected to be a key driver of new public cloud spending. AI capabilities are becoming increasingly important for organizations, and the role of public cloud in supporting AI offerings cannot be overstated.<\/p>\n\n\n\n

Lara Greden, research director at IDC, stated that most organizations consider their public cloud provider as their most strategic technology partner. As organizations plan for platform-as-a-service (PaaS) developer and data services, AI-enabled applications are gaining prioritization. Those already adopting AI find themselves well-positioned to evaluate the adoption of generative AI capabilities within their intelligent application strategies.<\/p>\n\n\n\n

In terms of spending, software-as-a-service (SaaS) applications accounted for the largest portion, generating US$246.3 billion in revenue in 2022. Infrastructure-as-a-service (IaaS) followed at US$115.5 billion.<\/p>\n\n\n\n

There can be multiple questions that crop up in the head when planning to migrate. Organizations require a complete picture before moving to the cloud. To get a clear view of this picture, you can fill in your details below & one of our cloud experts will connect with you. <\/p>\n\n\n\n