Hybrid approach dominates as Cloud infrastructure spend reaches $20bn in Q2
- AWS, Azure and Google dominate the market
- AWS retains lead with 31% of total market
- Quarterly infrastructure spend up 47% year-on-year
- 75% of businesses opting for a hybrid approach
It’s been a big week for cloud. First we had Microsoft’s full-year financials, showing massive contribution from its Azure cloud offerings, then Amazon rocked the market by exceeding expectations thanks in no small part to AWS, and then Google unveiled its new cloud strategy. As the above graphic shows, the big three remain dominant, with not a telco in sight.
New research from Canalys shows that cloud infrastructure services spending reached $20 billion in Q2 of 2018, up a staggering 47 per cent on the same quarter in 2017. Amazon Web Services (AWS) retains the lead with 31 per cent market share but both Microsoft Azure and Google Cloud are growing at far faster rates.
In the battle of public vs private cloud, there is no single winner, rather, the hybrid approach is proving most popular for business customers. 75 per cent of channel partner respondents indicated that most of their customers are adopting a combination of private and public cloud computing.
- “Businesses are assessing ongoing public cloud costs as well as usage rates to determine the best options for their workloads,” said Canalys Research Analyst Daniel Liu. “This will result in some remaining on-premises, some moving to public cloud providers and some returning from public to private clouds.”
Original Press Release
Cloud infrastructure spend reaches US$20 billion in Q2 2018, with hybrid IT approach dominant
Palo Alto, Shanghai, Singapore and Reading (UK) – Friday, 27 July 2018: Cloud infrastructure services spend reached US$20 billion in Q2 2018, up 47% on the same quarter in 2017. Amazon Web Services (AWS) remained the largest provider, accounting for 31% of the total market. It grew 48% during the quarter. Microsoft Azure continued to grow faster than AWS, increasing by 89%. It closed the market share leadership gap, with an 18% share against 14% in the same period a year ago. Google Cloud maintained momentum and held onto third place, growing 108% to represent 8% of the worldwide total.
Business adoption of public cloud infrastructure services is increasing as new digital applications are developed and existing workloads migrated. In a recent global Candefero survey of 264 channel partners, only 6% saw their customers take a cloud-first approach, placing everything in the public cloud.
“Hybrid IT is the dominant approach taken by businesses, with 75% of channel partner respondents indicating that most of their customers are adopting a combination of private and public cloud computing,” said Canalys Research Analyst Daniel Liu. “Businesses are assessing ongoing public cloud costs as well as usage rates to determine the best options for their workloads. This will result in some remaining on-premises, some moving to public cloud providers and some returning from public to private clouds.”
Channel partners play a vital role in cutting through the complexity faced by their customers.
“The opportunity is in professional services, in terms of consulting, integration and ongoing managed services,” said Liu. “Understanding the strengths and weaknesses of each public cloud provider, the different tariffs and discounts available, as well as assessing the appropriate placement of workloads is crucial. Partners must provide the tools to secure workload migration and movement, visibility and policy enforcement across multiple environments to ensure cost control and compliance, as well as providing platforms for new digital application development,” said Liu.
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