Enterprise spending on cloud services keeps accelerating



“Both Microsoft and Google continue to grow their cloud revenues by about 30% year-on-year, which is pretty impressive for such large operations,” said Dinsdale.

The Q2 market share numbers for the leading cloud providers are Amazon 32%, Microsoft 23%, Google 12%, Alibaba 4%, Salesforce 3%, Oracle 3%, IBM 2%, Tencent 2% and Huawei 2%. Other companies that have a market share of 1% (to the nearest percentage point) include Baidu, China Telecom, China Unicom, Fujitsu, NTT, Snowflake, SAP, Rackspace and VMware.

On-prem not suffering for cloud’s gain

Separately, Synergy has found that while the overall share of on-premises data centers has plunged in recent years, overall capacity remains consistent. It’s just that hyper scale operators are growing so much faster.

In 2017, the on-premise data centers of enterprises accounted for 60% of all data center capacity. By 2029, that share will have dropped to just a little over 20%, Synergy said. But the reason is not that on-premises data center capacity is falling. Despite all the talk of shutting down data centers and moving to the cloud, much work remains on premises, and capacity is actually staying relatively constant.

“On-premise share of the total will drop by almost three percentage points per year, though the actual capacity of on-premise data centers will remain relatively stable,” Synergy reported.

The big change in data center capacity will come from hyperscale operators – in 2029, hyperscale operators AWS, Microsoft, and Google will have eight times as much capacity in their data center footprints as they had back in 2017. That hyperscale capacity is shared between owned, own-built data centers and leased facilities, with owned capacity accounting for an ever-larger share of the total.



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