Cloud services spending leaps by 21% to $76.5bn in Q1

Cloud services spending leaps by 21% to $76.5bn in Q1

The appetite for cloud infrastructure services remains unsated, it seems, with Synergy Research Group reporting that the global sector was worth a staggering $76.5bn during the first quarter of this year, up by 21% (or $13.5bn) compared with the same period a year earlier. Based on that figure, the market is now worth more than $300bn per year. 

With the first-quarter numbers from Amazon Web Services (AWS) now published, the Synergy Research team has been able to assess the trends in the worldwide market for cloud infrastructure services, which comprises infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) and hosted private cloud services. Enterprise spending on these services was “well over $76bn worldwide”, despite ongoing “economic, currency and political headwinds”. However, “the underlying strength of the market is more than compensating for those constraints, aided in no small part by the impact of generative AI technology and services,” according to the research firm and, as a result, the sector’s growth rate is once again increasing (as the chart above shows). 

The sector continues to “grow strongly in all regions of the world. When measured in local currencies the APAC [Asia Pacific] region had the strongest growth, with India, Japan, Australia and South Korea all growing by 25% or more year over year,” according to the firm, though the US market, which grew by 20%, remains “by far the largest cloud market, with its scale surpassing the whole APAC region,” noted the research firm. 

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