IDC: Revenue from public cloud services grew 29% in 2021

According to the International Data Corporation (IDC) Worldwide Public Cloud Services Tracker, the global market for public cloud services, including infrastructure as a service (IaaS), platform as a service (PaaS), software as a service – system infrastructure software (SaaS – SIS) and software as a service – applications grew 29.0% year-over-year in 2021, with revenue totaling 408.6 billions of dollars.

With the combined revenues of the top five public cloud service providers (Microsoft, Amazon Web Services, Salesforce, Google, and SAP), they captured nearly 40% of the global total and grew 36.6% year over year. the other. With offerings in all four deployment categories, Microsoft captured the top spot in the overall public cloud services market with 14.4% share in 2021, followed closely by Amazon Web Services with 13.7% share.

“Enterprises continued their strong adoption of shared public cloud services in 2021 to more closely align IT investments with business outcomes and ensure rapid access to the innovations needed to be a digital-first enterprise,” said Rick Villars, Vice President of the Global Research Group at IDC. , said. “Over the next few years, leading cloud providers will play a critical role in helping businesses weather the current storms of disruption (inflation, supply chain, and geopolitical tensions), but IT teams will also focus more on a more large financial responsibility for variable expenses public cloud service models.

While the overall market for public cloud services grew by 29.0% in 2021, revenue from core cloud services that support digital-first strategies saw revenue growth of 38.5%. This highlights the growing reliance of enterprises on a cloud innovation platform built around widely deployed compute services, data/AI services, and application framework services to drive innovation. IDC expects spending on foundational cloud services (particularly the IaaS and PaaS elements) to continue to grow at a faster rate than the overall cloud market as enterprises leverage the cloud to overcome current disruptions and accelerate their transition to digital activities.

“The past few years have demonstrated that in these difficult times, companies are increasingly relying on cloud services to modernize their operations and deliver more value to customers,” said Dave McCarthy, vice president of research. , Cloud and Edge Infrastructure Services at IDC. “This trend is expected to continue as public cloud providers offer more ways to extend cloud services to on-premises data centers and edge locations. These expanded deployment options reduce many migration barriers and will facilitate the next wave of cloud adoption.

“In the digital world, companies that are serious about competing for the long term are using the lens of business outcomes to evaluate strategic technology decisions, fueling the rapidly growing ecosystem seen in the public cloud market,” Lara Greden, Director research, platform as a service for IDC, said. “Cloud service providers have demonstrated a relentless drive to improve developer productivity and overall application delivery speed, with an emphasis on container-first and serverless-first approaches. “

“SaaS applications remain the largest and most mature segment of public cloud, with 2021 revenues now reaching $177 billion. Tailwinds from the pandemic continued to fuel accelerated upgrades and replacements of older systems in 2021, although the company’s goals have not changed. Businesses are looking for applications that will help increase business intelligence, improve operational efficiency, and improve decision making. Ease of use, ease of implementation and integration, streamlined workflows, accessibility of data and analytics, and time to value are the key criteria driving purchasing decisions, although verticalization has also steadily increased as a key priority,” Eric Newmark, Group Vice President and Managing Director. , SaaS, enterprise software and global services division at IDC, said.
While the cloud services market and the SaaS application market are led by a small number of companies, there is still a healthy long tail of companies providing cloud services worldwide. In the core cloud services market, these leading companies account for nearly three-quarters of market revenue with targeted use-case-specific PaaS services or cross-cloud compute, data, or network governance services.

IDC defines fundamental cloud services as Infrastructure as a Service (IaaS), PaaS SaaS – SIS market segments where the eight major public cloud service providers (Amazon Web Services, Microsoft, Google, Alibaba Group, IBM, Tencent, Huawei and Oracle) account for most of the revenue. These include the following key service portfolios:

  • Calculation services: Virtualized x86 computing, bare metal computing, block storage, accelerated computing, other computing and software-defined computing software.
  • Data services: Data management systems, object storage, file storage and event stream processing software.
  • Application framework services: Developer-centric software for developing and deploying applications in the cloud, including lifecycle management. These services include integration software, deployment-centric application platforms, and AI lifecycle software.
  • Usage multiplier services: Services that encourage greater/more efficient use of high-value services by making it easier to adopt, connect, deploy, track, secure, and update these services. Includes load balancing and DNS as well as open source software solution marketplaces and bundles.

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