The figures are in: the cloud services market is in a roll, with a 26% growth or $126 billion in the first quarter. Increasing public patronage in infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) resulted to record revenue growth in the industry, according to a recent study by the Synergy Research Group.
Based on the research, user spending specifically in PaaS and IaaS increased during this time period. The $126 billion revenue also includes vendor spending on facilities and equipment, as well as user spending on public cloud services.
Record Q1 revenue for IaaS, PaaS
The first quarter saw the biggest revenue for PaaS and IaaS, with both services accounting 36% increase year over year, amoutning to over $44 billion. Meanwhile, private cloud services such as content delivery networks (CDNs) and enterprise SaaS brought additional $54 billion, a 21% uptick from the previous year.
Surge in user spending on data center hardware has contributed to additional spending by public cloud providers. For instance, these providers spend $28 billion or a 20% increase from last year to build, equip, and lease their infrastructure to meet unprecedented demand.
The biggest winners from this user demand include known brands in the public cloud ecosystem such as Google, Salesforce, Amazon, and Microsoft. In addition, Cisco, Oracle, IBM, Dell, and Adobe also pitched in 60% all total revenue of public cloud services.
US-based firms led the pack with Chinese companies coming in second in the market.
Future is bright for public cloud
By all indications, the future seems bright for public cloud. Synergy Research Group’s chief analyst John Dinsdale revealed that revenue for public cloud will double in three to four yers’ time.
Therefore, public cloud providers must create additional raw computing power and voost their hyperscale data centers to respond to market demand. Indeed, companies that will “bring the right products in a timely fashion” will fare better than other competitors, added Dinsdale.