Spending on cloud infrastructure services has crossed $76 billion in Q1 2024, up $13.5 billion or 21 percent from the first quarter of 2023, Synergy Research Group said.
This is the second consecutive quarter in which the year-on-year growth rate has markedly improved, with Q1 seeing the strongest growth since the third quarter of 2022.
Amazon maintains a strong lead in the market though Microsoft and Google had the stronger year-on-year growth numbers.
Amazon, Microsoft and Google have cloud market share of 31 percent, 25 percent and 11 percent, respectively, in Q1 2024.
Among the tier two cloud providers, those with the highest year-on-year growth rates include Huawei, Snowflake, MongoDB and Oracle.
Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $76.5 billion, with trailing twelve-month revenues reaching $283 billion.
Public IaaS and PaaS services account for the bulk of the market and those grew by 23 percent in Q1. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three account for 72 percent of the market.
Geographically, the cloud market continues to grow strongly in all regions of the world. When measured in local currencies the APAC region had the strongest growth, with India, Japan, Australia and South Korea all growing by 25 percent or more year over year. The US remains by far the largest cloud market, with its scale surpassing the whole APAC region. The US market grew by 20 percent in Q1.
“In terms of annualized run rate we now have a $300 billion market which is growing at 21 percent per year. We will not return to the growth rates seen prior to 2022, as the market has become too massive to grow that rapidly, but we will see the market continue to expand substantially. We are forecasting that it will double in size over the next four years,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
