Spending on cloud infrastructure services grew 37% year-on-year, to $29 billion, during the first quarter of 2020, says Synergy Research Group. The revenue jump was at the size expected, according to the market research firm, despite the COVID-19 virus spread reaching pandemic proportions during the quarter. In fact, there is what Synergy Research called “anecdotal evidence” that the need to support employees working from home may have improved the quarter’s performance.
“While COVID-19 is having a devastating impact on communities and economies around the world, indications are that it is having a mildly positive impact on the cloud infrastructure services market,” said John Dinsdale, a chief analyst at Synergy Research. “For sure the pandemic is causing some issues for cloud providers, but in uncertain times the public cloud is providing flexibility and a safe haven for enterprises that are struggling to maintain normal operations. Cloud provider revenues continue to grow at truly impressive rates, with AWS and Azure in aggregate now having an annual revenue run rate of well over $60 billion.”
Amazon Web Services was the quarter’s worldwide market share leader, with a 32% slice. Microsoft, meanwhile, saw growth in demand for its Azure services exceed that of the overall market by more than 20% during the quarter; its market share has increased by almost 3% over the last four quarters, reaching 18%, says Synergy Research. Google, Alibaba, and Tencent also are seeing overall market growth better than the industry average; each of the three saw revenues spike by 45% or more year-on-year in 1Q20. IBM, Salesforce, Oracle, and Rackspace have what Synergy Research terms “substantial market share” but are somewhat niche players in the market research firm’s estimation.