AWS, Microsoft, and Google Dominate Global Cloud Services Market with 64% Share

According to a report by market research firm Canalys, the top three cloud services providers, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, collectively accounted for a 64% share of customer spending in the first quarter, with a growth of 22%. The report also revealed that AWS was the leading cloud service provider in Q1, with a 32% share of total spending after growing 16% year-on-year.

AWS, Microsoft, and Google Hold Stronghold in Cloud Services Market

Microsoft Azure remained the second largest cloud service provider, with a 23% market share after growing by 27% year-on-year. Meanwhile, Google Cloud grew 30% in the March quarter and accounted for a 9% market share. The worldwide spending on cloud infrastructure services increased by 19% to $66.4 billion in Q1 2023.

Slowdown in Cloud Services Market Growth Continues

Despite being one of the fastest-growing segments of the IT market, customer investments in cloud services are slowing down due to persistent macroeconomic uncertainties. The growth rate in cloud services fell below 20% for the first time, and all cloud hyperscalers were adversely affected, with their growth falling by four percentage points from the previous quarter. To counter the slowdown, the companies announced staff layoffs and other internal cost cuts in their cloud divisions.

Regionally, the Asia-Pacific (APAC) saw the weakest performance, with customer spending reducing in Mainland China, which impacted many of the Chinese hyperscalers. Canalys predicts that global cloud services spending will continue to be slow through the second half of 2023. According to Alex Smith, VP at Canalys, "Enterprises are benefiting from the hybrid cloud model, but moving workloads between on-premises and cloud platforms can be costly for them."

Conclusion:

AWS, Microsoft Azure, and Google Cloud collectively accounted for 64% of customer spending in the cloud services market in Q1 2023. While the global spending on cloud infrastructure services increased by 19%, it fell below 20% for the first time due to persistent macroeconomic uncertainties. The growth of all cloud hyperscalers was affected, leading to staff layoffs and cost cuts in their cloud divisions. The APAC region saw the weakest performance due to reduced customer spending in Mainland China. Canalys expects global cloud services spending to continue to be slow in the second half of 2023. The hybrid cloud model is helping enterprises, but moving workloads between on-premises and cloud platforms can be costly.

Important News Tags and Headlines for Readers

AWS, Microsoft, and Google Hold Stronghold in Cloud Services Market H3: Slowdown in Cloud Services Market Growth Continues

Global Spending on Cloud Infrastructure Services Reaches $66.4 Billion in Q1 2023 H3: Cloud Providers Experience Slowing Growth Amid Macro Uncertainties

Asia-Pacific Region Sees Weakest Performance in Cloud Services Market H3: Mainland China's Reduced Customer Spending Impacts Chinese Hyperscalers