IDC has recently released a report claiming that the top five cloud service providers accounted for more than a third of the total global revenue. The global public cloud services market hit a total of $233.4 billion last year, a 26% increase year-over-year.
The new report from IDC says that Amazon Web Services, Google Cloud, Microsoft, Oracle, and Salesforce.com, accounted for more than a third of that total, making it a combined 35% growth year-over-year.
SaaS still maintained its position as one of the most significant public cloud spending segments, with revenue in 2019 exceeding $122 billion. That is a 20% growth year-over-year.
IDC expects SaaS growth to continue as a result of the pandemic forcing more businesses to adopt subscription models to enable the use of collaborative software and facilitate remote working efforts. Cloud services are no longer a niche in e-commerce.
It now underpins the digital activities depended upon by individuals and businesses to enable easy navigation and a way to move beyond the crippling effects of the pandemic.
According to Rick Villars, the group vice president of Worldwide Research at IDC, “Enterprises have always considered and talked about cloud in the past, with projections of a decade-long shift. Now, they have to do it in half the time”.
IaaS and PaaS take second and third place respectfully
Coming in second after SaaS is Infrastructure as a service (IaaS) with revenues of up to $49 billion, from $35.4 billion in 2018. In third place was platform as a service (PaaS), with revenues of up to 35.9 billion.
When combining IaaS and PaaS markets, AWS and Microsoft make up more than half of global revenues. IDC said that they expect spending on IaaS and PaaS to continue growing at a rate higher than the cloud market in the years to come.
The uncertain economic times demand change, and it will come.