TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Open RAN
  • Digital Platforms and Services
  • 5G
  • Access Evolution
  • Private Networks
  • Cloud Native
  • Edge
  • Open Networking
  • Sustainability
  • AI, Analytics and Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • 5G
  • 6G Research and Innovation
  • Access Evolution
  • AI, Analytics and Automation
  • Cloud Native
  • Digital Platforms and Services
  • Edge
  • Open Networking
  • Open RAN
  • Private Networks
  • Security
  • Sustainability
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Digital Platforms & Services

Digital Platforms & Services

Cloud spending surged in Q2 2020, as lockdowns drove high levels of consumption

Via Canalys Newsroom

Jul 31, 2020

  • Home
  • Newsroom
  • Cloud spending surged in Q2 2020, as lockdowns drove high levels of consumption

Shanghai (China), Bengaluru (India), Singapore, Reading (UK) and Portland (US)

The Q2 2020 worldwide cloud infrastructure services market continued to surge,as spending grew 31% to US$34.6 billion. Overall, total expenditure was over US$3.5 billion higher than the previous quarter and more than US$8 billion on Q2 2019 according to Canalys data. This represents the largest quarterly expansion in terms of US dollars, as consumption of cloud-based services for online collaboration and remote working tools, ecommerce, remote learning, and content streaming hit new records during lockdown. But growth rates continued to be constrained due to a slowdown in large projects, as the economic outlook weakened, and existing IT assets made to last longer. Amazon Web Services (AWS) was the leading cloud service provider in Q2 2020, accounting for 31% share of total spend. Microsoft Azure reached 20% market share for the first time after a strong end to its fiscal year. Google Cloud remained the third largest cloud service provider with 6%, after exceeding the US$2 billion mark, followed by Alibaba Cloud with 5%.

Business continuity emerged as a top priority for many organizations from the start of the year. The need for robust plans to enable operations to continue no matter the situation has never been more crucial considering the impact of the COVID-19 pandemic. “Cloud-based services were pivotal in enabling emergency continuity plans designed to maintain virtual operations during lockdown,” said Canalys Chief Analyst, Matthew Ball. “These will also prove to be critical in the next phase of the response to COVID-19, as economies gradually re-open. In addition to supporting continued remote working and distance learning, cloud-based services will underpin the deployment of new digital workflows such as online booking and ordering systems as well as other contactless service engagements. It will also be part of solutions to make workplaces COVID-secure by monitoring occupancy levels and footfalls as well as contact-tracing to help reopen large offices and education facilities with confidence. Demand for cloud-based services will remain strong, as organizations accelerate their digital transformation initiatives over the next 12-months to capitalize on new emerging opportunities.”

Organizations will take advantage of the different strengths and capabilities of each cloud service provider, as they migrate more of their existing workloads to the public cloud and develop new cloud native applications. But this will not be a quick process. Instead it will be a multi-stage, multi-year process. “Differentiation among the leading providers will be critical as competition for customer’s spending on digital transformation projects intensifies,” said Canalys Research Analyst, Blake Murray. “Security, code development and migration tools, support for multi-cloud and hybrid-IT deployments, as well as enabling more predictable costs will be key areas of focus as organizations look to move as quickly as possible, minimize disruption and keep within more constrained budgets. The top four cloud service providers have maintained the pace of innovation over the last six months and will look to add further capabilities to help win new business. But competition from other cloud service providers will intensify.”

Related Topics
  • Canalys,
  • Cloud,
  • Digital Platforms & Services,
  • Enterprise,
  • Global,
  • Telco & CSP,
  • Tracker

More Like This

Digital Platforms & Services

BT remains home of UEFA Champions League, UEFA Europa League and UEFA Europa Conference League until 2027

Jul 1, 2022

5G

Nokia supports DISH Wireless launch of world’s first telco network using 5G Standalone Core on AWS public cloud

Jul 1, 2022

Open RAN

NEC Expands Global Solutions Delivery Capacity with Acquisition of Aspire Technology

Jul 1, 2022

Access Evolution

What’s up with… Cellnex and Deutsche Telekom, Virgin Media O2, Rakuten Symphony

Jun 30, 2022

Open RAN

Rakuten Symphony Names Zia Syed President of Symworld Platform Business Group to Accelerate Telco Industry Change

Jun 30, 2022

This content extract was originally sourced from an external website (Canalys Newsroom) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

10:14

Executive Interview: Vodafone’s Lucia De Miguel Albertos on the ultimate RAN Intelligent Controller

39:34

Figuring out the TCO of Open RAN

6:47

Dell's Role in Open RAN

4:24

Executive Interview: Neil McRae on BT's Open RAN Plans

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2022. All rights reserved. All brands and products are the trademarks of their respective holder(s).