It is perhaps no surprise given the number of cloud players based in the country, but new data from Synergy Research Group shows the U.S. is the center of the cloud universe. The country accounted for 44% of all cloud service revenues and just over half (51%) of all hyperscale data center capacity in Q1 2022.
For comparison, the firm noted China, which is home to several other cloud players, only accounted for 8% of all Q1 cloud service revenue and 15% of hyperscale data center capacity.
According to Synergy, revenue from the overall public cloud service and infrastructure market jumped 26% year on year in Q1 to a total of $126 billion. Infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings accounted for the largest chunk of sales, with revenue of $44 billion up 36% year on year. Unsurprisingly, Amazon Web Services (AWS), Microsoft and Google were the top players in this space.
Another $54 billion came from the managed private cloud services, enterprise software-as-a-service (SaaS) and CDN segments, with this figure up 21% year on year. The managed private cloud space was dominated by AWS, IBM and Microsoft, while Microsoft, Salesforce and Adobe ruled the enterprise SaaS market. Top CDN players included Akamai, AWS and Cloudflare.
The remaining $28 billion in revenue came from data center infrastructure, with ODMs, Dell and Inspur leading the data center hardware and software markets and Digital Realty, GDS and CyrusOne reigning in hyperscale data center leasing.
In Q1 2022, AWS revenue grew 36% to $18.44 billion; Microsoft Cloud revenue jumped 32% to $23.4 billion; and Google Cloud revenue jumped 44% to $5.8 billion. After earnings wrapped in April, Synergy said AWS topped the cloud infrastructure services marketplace with 33% share, with Microsoft and Google trailing with 22% and 10% share, respectively.
All told, Synergy Research Group said in its latest report Microsoft, AWS, Salesforce, Google, Adobe, Alibaba, Cisco, Dell, Digital Realty, IBM, Inspur, Oracle, SAP and VMware reeled in 60% of all public cloud-related sales.
Over the next five years, John Dinsdale, chief analyst at Synergy Research Group, tipped current cloud growth rates of 15% to 40% to dip to between 10% to 30%. However, he added “to enable cloud service markets to keep up with demand by doubling in size in the next 3-4 years, the major cloud providers need an ever larger footprint of hyperscale data centers and more raw computing power, which then drives the markets for data center hardware and software.”