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Business:- Enterprise spending on cloud infrastructure services exceeded $57 billion in the third quarter. According to recent Synergy Research Group figures, this is an increase of more than $11 billion from the previous year’s third quarter.
This additional spending represents a 24% year-on-year increase. This was despite a historically strong US dollar and a very constrained Chinese market. If exchange rates had remained unchanged over the last year, the growth rate would have been over 30%.
Google boosted its market share in the third quarter compared to the second. Shares of Amazon and Microsoft stayed essentially unchanged. Over the previous year, all three had improved their market share by at least a percentage point. Amazon, Microsoft, and Google had a combined 66% share of the global market in the third quarter, up from 61% a year ago. All other cloud providers’ revenues have increased since late 2017, but their collective market share has dropped from 50% to 34% as their growth rates remain lower than the market leaders.
The global market for cloud infrastructure services is expanding.
“It is a great tribute to the benefits of cloud computing that, despite two major impediments to growth, the global market rose by 24% year on year.” According to Dinsdale, if exchange rates had remained stable and the Chinese market had followed a more normal course, the growth rate percentage would have been well into the thirties.
He said the three largest cloud providers report their financials in US dollars. The historical strength of their respective currencies has “beaten down” their growth rates. Regardless, all three have gained their market share in a fast-expanding business during the last year. Dinsdale stated that this is a significant tribute to their methods and performance.
According to Synergy, third-quarter cloud infrastructure service revenues were $57.5 billion, with total revenues for the year reaching $217 billion. Most of the market comprises public IaaS and PaaS services, which expanded by 26% in the third quarter. The big cloud companies’ dominance is even more evident in the public cloud. The top three companies control 72% of the market. Geographically, the cloud market is expanding rapidly in all parts of the world.