Amazon Web Services (AWS) is the leading cloud service provider in Q1 2022 with 33 percent share. AWS revenue rose 37 percent.
AWS expanded its global presence, launching 16 Local Zones in the US and announcing plans to add 32 more Local Zones across 26 countries.
AWS announced key client wins with a focus on telecommunications companies like T-Systems, Verizon and Telefonica. AWS advanced its relationship with Tech Mahindra to power an automation platform to accelerate 5G network adoption for telecommunications companies.
Microsoft Azure is the second largest cloud provider in Q1 with 21 percent market share. Microsoft Cloud business revenue rose 46 percent.
Microsoft is gearing its new Cloud Partner Program, unveiled last month and launching in October, to boost Azure business through the channel. Amid controversial channel program changes in Microsoft’s New Commerce Experience (NCE), the Cloud Solution Provider program has reached phase two of its deployment, with changes to Azure offerings and new partner credits and incentives. Microsoft also announced key wins with global systems integrators, including Atos and Fujitsu.
Google Cloud has 8 percent of the market. Google Cloud revenue rose 54 percent in the first quarter. Google Cloud focuses on digital sovereignty, analytics, AI and cybersecurity as key differentiators for GCP, advancing its cloud cybersecurity practice with the acquisition of Mandiant.
Google Cloud is investing in expanding its regional data center footprint. Google Cloud is tapping channel partners for enhancing customer reach, scale and sales efficiency as it seeks to reduce cloud business’s operating loss from $931 million in Q1.
Google Cloud announced a reshuffle to bring together its ecosystem and channel sales teams and pledged to double spend on its partner ecosystem over the next few years, which includes co-marketing and training.
Systems integrators, including Accenture, Atos, Deloitte, HCL Technologies, TCS, Kyndryl, Tech Mahindra and Wipro, are building practices with tens of thousands of cloud engineers and consultants. This has also included acquisitions of cloud application development and migration specialists, as well as the launch of dedicated cloud services brands.
“As the use cases for cloud infrastructure services expand so does the potential complexity, and we see that hybrid and multi-cloud deployments are commonplace in the market,” said Canalys Research Analyst Yi Zhang. “The hyperscalers are investing in rapid channel development and partners are responding as the opportunities grow.”
Synergy Research Group said worldwide cloud revenues grew 34 percent to $53 billion in Q1 2022.
The Q1 market share numbers for the leading cloud providers are Amazon 33 percent, Microsoft 22 percent, Google 10 percent, Alibaba 6 percent, IBM’s Kyndryl 4 percent, Salesforce 3 percent, Tencent 3 percent and Oracle 2 percent.
Other companies who have a market share of 1 percent include Baidu, China Telecom, China Unicom, Huawei, Fujitsu, NTT, Rackspace and SAP, according to Synergy Research Group.