Cloud infrastructure services spending grew 35 percent to US$41.8 billion during the first quarter of 2021, the latest Canalys report said.
Overall, customer spending exceeded $40 billion a quarter for the first time in Q1 2021, with total expenditure nearly US$11 billion higher than in Q1 2020 and nearly US$2 billion more than in Q4 2020, according to Canalys data.
The acceleration of digital transformation over the last 12 months, with organizations adapting to new working practices, customer engagement, and business process and supply chain dynamics, has elevated demand for these services.
This, combined with the rebound in some economies, in line with government stimuli, the roll-out of mass COVID-19 vaccination programs and subsequent easing of restrictions, has increased customer confidence in committing to multi-year contracts.
Amazon Web Services (AWS) was the leading cloud service provider in Q1 2021, growing 32 percent on an annual basis to account for 32 percent of total spend.
Microsoft Azure grew 50 percent for the third consecutive quarter, taking 19 percent market share in Q1 2021.
Google Cloud grew 56 percent in the latest quarter to account for 7 percent market share. Cloud-native development and accelerated cloud migration among its customers has been boosted by its focus on industry-specific solutions, machine learning, analytics and data management. It announced a new cloud region in Israel.
“Cloud emerged as a winner across all sectors over the last year, basically since the start of the COVID-19 pandemic and the implementation of lockdowns. Organizations depended on digital services and being online to maintain operations and adapt to the unfolding situation,” said Canalys Research Analyst Blake Murray.