- Worldwide IaaS revenues soar 30% in 2022 to exceed $100b for the first time
- Amazon retains the top position, followed by Microsoft, Alibaba, Google and Huawei.
Google saw the highest growth rate among the top five IaaS public cloud vendors, growing 41 per cent in 2022 to reach over $9 billion in revenue compared to $6.3 billion in 2021.
“Google’s increased investment in sovereign cloud and expanded sales and marketing partner programs helped to broaden its customer base and drive additional IaaS revenue,” Sid Nag, VP Analyst at Gartner, said.
Amazon retained the top position in the IaaS market in 2022, followed by Microsoft, Alibaba, Google and Huawei.
The top five IaaS providers accounted for over 80 per cent of the market last year.
Amazon continued to lead the worldwide IaaS market with revenue of $48.1 billion and 40 per cent market share while Microsoft retained its position with 21.5 per cent share, reaching over $25 billion.
Business disruptor
“Microsoft’s software-first strategy continued to support its IaaS growth as customers required more cloud capacity to support automation, advanced analytics and digital workplace capabilities,” Nag said.
Alibaba Group again held the No. 3 position with 7.7 per cent market share, although with modest 2.4 per cent year over year growth.
While Alibaba continued to lead the IaaS market in China, Nag said that its limited potential for expansion across global markets has slowed growth, driving its recent decision to spin off its Alibaba Cloud business into a separate entity.
Huawei rounded out the top five IaaS vendors with 4.4 per cent market share and $5.2 billion in revenue for 2022.
“Since its 2020 pivot to an increased focus on cloud, Huawei has been steadily growing its IaaS revenue in China and emerging markets,” he said.
However, he said that the global IaaS market exceeded $100 billion for the first time to reach $120.3 billion, up from $92.8 billion in 2021.
“Cloud has been elevated from a technology disruptor to a business disruptor,” Nag said and added that IaaS is driving software-as-a-service (SaaS) and platform-as-a-service (PaaS) growth as buyers to continue to add more applications to the cloud and modernise existing ones.
More room for growth
“IaaS growth in 2022 was stronger than expected, despite a slight softening in the fourth quarter as customers focused on using their previously committed capacity to its fullest potential,” Nag said.
“This is expected to continue until mid-2023 and is a natural outcome of the market’s maturity. We expect an acceleration in 2024, as there is still room for plenty of additional future growth.”
“Generative AI will continue to drive the cloud market forward, particularly as hyperscalers look to support offerings beyond the existing, democratized generative AI solutions,” Nag said
As enterprises integrate generative AI into their technology portfolio, he said that new markets and opportunities for cloud hyperscalers will emerge related to sovereignty, ethics, privacy and sustainability.