Industry participants rightly worry about the state of enterprise information technology spending whenever there is recession fear. But analysts at Gartner predict worldwide IT spending will grow five percent to $4.6 trillion in 2023, despite the expected economic difficulties.
All other things being equal, that also should translate into growth of cloud infrastructure services as well. Gartner's “software” category (which includes cloud spending) is expected to rise 11.3 percent in 2023 to reach $880 million.
Third quarter 2022 enterprise spending on cloud infrastructure services exceeded $57 billion, says Synergy Research Group. This was up by well over $11 billion from the third quarter of last year despite a strong U.S. dollar that knocked about six points off the growth rate, and a severely restricted Chinese market, Synergy Research says.
Still, cloud infrastructure services grew at a 24-percent clip, year over year.
Google increased its market share in the third quarter, while Amazon and Microsoft market shares remained relatively unchanged. Amazon, Microsoft and Google combined had a 66 percent share of the worldwide market in the quarter, up from 61 percent a year ago, the firm says.
“Beyond these three, all other cloud providers in aggregate have been losing around three percentage points of market share per year but are still seeing strong double-digit revenue growth,” said John Dinsdale, Synergy Research Group chief analyst.
Aside from other considerations, Google’s lower overall market share should sustain its growth rate, as AWS and Microsoft face the law of large numbers, which tends to depress growth rates from a high installed base.
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