Worldwide spending on cloud infrastructure services increased 28 percent to $63.1 billion in Q3 2022 from $13.8 billion a year ago.
Amazon Web Services (AWS), Microsoft Azure and Google Cloud are the top three Cloud providers in Q3 2022.
AWS was the leading cloud service provider in Q3 2022, accounting for 32 percent of total spend after growing 27 percent on an annual basis.
Azure came second with a 22 percent market share after growing 35 percent annually. Growth was driven by strong renewal execution.
Google Cloud’s growth rate accelerated again, up by 48 percent, boosting its market share in the global cloud services market to 9 percent.
“Under economic pressure, enterprise CIOs are choosing to reduce operational risks by lowering their IT budgets,” said Canalys VP Alex Smith.
“Despite winning large Cloud deals and having a backlog of Cloud contracts, the growth of cloud vendors will be constrained because of project delays as some customers get skittish about the economic outlook.”
Hyperscalers will face a period of rising costs and lower revenue growth, which may lead to more conservative planning towards spending in 2023. Hyperscalers will need to increase their prices in Europe by 30 percent to account for rising energy costs, Canalys said.