Synergy Research Group, a market research company, has released a report on the spending of organizations in the cloud infrastructure in the fourth quarter of 2023. The overall spending reached nearly $74 billion worldwide, an increase of over $12 billion from the fourth quarter of 2022, marking a 20% growth. Additionally, it increased by $5.6 billion from the third quarter of 2023, showcasing a remarkable quarter-over-quarter growth.
Throughout 2023, cloud spending has seen a 19% increase compared to 2022, despite the impact of global economic factors, exchange rates, and geopolitical issues. The demand for Generative AI has contributed significantly to this investment surge, reflecting in increased cloud expenditure.
Amazon’s AWS still holds the largest market share at 31%, although it is experiencing a downward trend. On the other hand, Microsoft enjoys a 24% market share and is showing a positive upward trajectory. Google follows closely with an 11% market share (see infographic at the end of the article).
Based on the year-long figures in 2023, Synergy estimates that cloud services spending will reach $270 billion, with a continuous upward growth trend. It is possible that we may soon witness annual spending in this market surpassing the $500 billion mark.
TLDR: Synergy Research Group’s report highlights a significant increase in global cloud infrastructure spending, with a 20% growth in the fourth quarter of 2023 compared to the same period in 2022. Despite economic and political challenges, the demand for Generative AI has driven this surge, leading to an estimated annual spending of $500 billion in the near future. Amazon’s AWS remains the market leader, but Microsoft and Google are gaining ground.
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