Cloud infrastructure market has hit $42 billion in revenue in Q2

The global cloud market hit $42 billion in total revenue with all major vendors reporting, up $2 billion from Q1.

Synergy Research reports that the cloud marketing revenue has grown at a 39% clip, the fourth consecutive quarter that it has increased. With AWS growing the most, followed by Microsoft and Google.

AWS has increased growth by 5% over the previous quarter at 37%, accounting for $14.81 billion in revenue for Amazon’s cloud division, putting it close to a $60 billion run rate with a 33% market share.

Microsoft has proven an increase in growth at 51%, with 20% of market share according to Synergy Research, putting it at $8.4 billion, an increase from $7.8 billion in the last quarter.

Google showed progress under the leadership of Thomas Kurian, with a 54% increase in cloud revenue in Q2 on revenue of $4.2 billion (up from £3.5 billion in the last quarter), with a 10% market share, the first time Google Cloud has reached double figures in Synergy’s quarterly tracking date.

Alibaba held a 6% market share, and IBM fell to 4% as Big Blue continues to struggle in pure infrastructure as it makes the transition to more of a hybrid cloud management player.

John Dinsdale, the chief analyst at Synergy, states that the Big 3 are spending big to help fuel this growth. Stating, “Amazon, Microsoft and Google in aggregate are typically investing over $25 billion in capex per quarter, much of which is going towards building and equipping their fleet of over 340 hyperscale data centres.”

Canalys reported similar numbers to Synergy but found the overall market slightly higher at $47 billion. With their market share showing Amazon with 31%, Microsoft with 22%, and Google with 8% of the total number.

Canalys analyst Blake Murray said: “The best practices and technology utilized by these companies will filter to the rest of the industry, while customers will increasingly use cloud services to relieve some of their environmental responsibilities and meet sustainability goals.”

Evidently, companies are continuing to merge more towards the cloud. With it being estimated that worldwide cloud usage is around 25%, and the potential for growth remains optimistic.