Cloud spending surges 24% to $57 bn in Q3

Enterprise spending on cloud infrastructure services rose 24 percent to exceed $57 billion during the third quarter of 2022, Synergy Research Group said.
Q3 2022 Cloud spendingGoogle Cloud increased its market share in Q3 compared to the prior quarter.

Amazon and Microsoft market shares remained relatively unchanged.

Amazon, Microsoft and Google combined had a 66 percent share of the worldwide market in the quarter, up from 61 percent a year ago.

Reuters news report said growth in Amazon Web Services (AWS) was 28 percent in the July-September period versus 39 percent a year earlier, the slowest since the fourth quarter of 2020.

Microsoft’s cloud business Azure, which had supercharged revenue growth at the US-based software giant for years, dropped to 35 percent growth in the July-September quarter from 50 percent a year earlier. Microsoft’s cloud business projected another drop in the holiday quarter.

Alphabet’s Google Cloud revenue grew 38 percent in the quarter vs 45 percent growth the company posted a year earlier.

Intel, which makes chips for data center customers including AWS, said third-quarter revenue from that business slumped 27 percent and profits were nearly wiped out. The business was hurt partly due to soft demand from Chinese enterprise customers, Intel CEO Pat Gelsinger said.