Cloud spending reached record levels in the world in the first quarter of 2020, up 34% due to smart working demand.
According to the latest surveys of Canalys, in fact, infrastructure services set yet another record in the first quarter of 2020, recording a 34% growth, to reach 31 billion dollars.
Increasing demand for online collaboration tools, e-commerce and cloud services has led to a strong increase in cloud infrastructure consumption, benefiting all major infrastructure providers.
But this was offset by a slowdown in large business migrations and IT transformational cloud projects caused by lockouts, according to Canalys.
According to Canalys’ data, Aws has maintained its leading position in cloud services, representing a 32% share of the total market in the first quarter as sales grew by 33%.
Microsoft Azure’s sales increased by 59%, bringing its market share to 17%. In some Azure markets, it reached capacity limits, although this was due to the unprecedented use of Teams, which however did not have a direct impact on Azure’s revenue. This also forced Microsoft to limit consumption for some services and new customers.
Google Cloud ranks third in the world infrastructure market in the first quarter of 2020, followed closely by Alibaba Cloud. Both had a 6% share in the total market for cloud infrastructure services. Google has seen its data and analysis platform adopted in some of the main vertical sectors, driven by the public sector, health, service providers and financial services, although this has been partially offset by the weakness of other segments. Google continues to invest in an aggressive expansion strategy for the Google Cloud Platform, both through business sales and technical resources. Alibaba was one of the first cloud service providers to launch initiatives to support companies affected by the blockade in China, with free credits and access to its DingTalk collaborative suite.
Cloud and consumption, the answer ready
And that the work of infrastructure providers was important in the first quarter of 2020 Alastair Edwards, Chief Analyst of Canalys, points out that…platforms like Zoom would not have been able to operate without the flexible infrastructure provided by the main
For Canalys, in fact, service providers responded well to the increase in consumption. Microsoft announced an emergency plan, which included adding new server capacity to its data centers in the most affected regions. Aws opened two new regions in April, in Cape Town and Milan, with others scheduled in the coming quarters. Google Cloud has unveiled plans for the opening of four new cloud data centers in Asia, Canada and the Middle East. Alibaba Cloud has unveiled an investment of 28 billion dollars to expand its business worldwide over the next three years.
Commentary on Canalys notes that the cloud is a response at a time when cost reduction and capital protection are a priority. Everything that does not improve the current business continuity initiatives is taking second place while companies rethink budgets in the face of increasing uncertainty. At the same time, companies around the world urgently need access to flexible processing capabilities to support remote work, collaboration, online commerce and security. Cloud infrastructure is an obvious short-term solution.
But there is a but. Service providers have also felt the negative impact of a slowdown in major consulting projects, including Sap migrations, hybrid cloud deployments and other transformation projects that have provided a major boost to growth that had been recorded in recent quarters. Investments in the most affected vertical segments, such as hospitality, aerospace, construction, tourism and manufacturing, are reduced or delayed. This offset part of the short-term growth recorded in the quarter.