How to democratise IT: Tech big four hoover 63% of global cloudy infrastructure spending

No, we have not used the term 'digital transformation'... oh bugger


Continuing to democratise IT, the big four scooped up 63 per cent of the whopping $34.6bn that customers spent globally on cloudy infrastructure services in Q2.

The dollar figure was itself up 31 per cent or $8bn compared to what businesses splurged on cloudy pipes and plumbing a year ago, according to market watcher Canalys.

"Cloud-based services were pivotal in enabling emergency continuity plans designed to maintain virtual operations during lockdown," said Matthew Ball, chief analyst.

AWS was still the clear market leader with a 31 per cent share of the spoils, equating to $10.726bn, up from the $8.19bn the analyst said it turned over in Q2 2019. In second spot was Microsoft, which had a 20 per cent market share to take home $6.92bn, jumping 47 per cent from $4.706bn a year earlier.

Google accounted for 6 per cent of the sector spending with $2.076bn, and Alibaba took a 5 per cent slice of the infrastructure-as-a-service pie at $1.73bn. The "Others" section accounted for 37 per cent of total spending.

Infrastructure clouds are "critical" to the phased response to coronavirus as local economies try to open up and lockdown is eased, said Ball.

"In addition to supporting remote working and distance learning, cloud-based services will underpin the deployment of new digital workflows such as online booking and ordering systems, as well as other contactless service engagement," he added.

"It will also be part of solutions to make workplaces COVID-secure by monitoring occupancy levels and footfalls as well as contact-tracing to help reopen large offices and education facilities with confidence."

Google this week reported revenues of $38.3bn, down 2 per cent year-on-year due to a tumble in its main business – advertising. Total revenue for its cloud business was the bright spot, growing 43 per cent to $3bn. AWS also reported financials this week and Microsoft last. ®


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