Public cloud services revenue jumps 23% to $546 bn: IDC

Revenue for the public cloud services market increased 22.9 percent to $545.8 billion in 2022, according to IDC report.
Worldwide Public Cloud Services 2022Software as a Service – Applications (SaaS – Applications) accounts for more than 45 percent of the total public cloud services market in 2022.

Infrastructure as a Service (IaaS) accounts for 21.2 percent of the total public cloud services revenue.

Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 17.0 percent and 16.7 percent of overall revenue respectively.

“Given the economic challenges of the past year, we are in a period where a focus on constraining new expenditures and optimizing the use of existing cloud assets will dominate CIOs’ priorities and shape the fortunes of IT providers for the next several years,” said Rick Villars, group vice president, Worldwide Research at IDC.

“The assessment and use of AI, triggered by generative AI, is starting to dominate the planning and long term investment agendas of businesses and cloud providers will play a significant role in the evaluation and adoption of AI enablement services.”

The combined revenue of the top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce, Google, and Oracle – captured more than 41 percent of the worldwide total and growing 27.3 percent year over year.

Microsoft remained in the top position in the overall public cloud services market with 16.8 percent share in 2022, followed by Amazon Web Services with 13.5 percent share.