Gartner: IaaS Public Cloud Revenue exceeds $100B in 2022, Up by 30%

In 2022, the global infrastructure as a service (IaaS) public cloud revenue witnessed growth, surging by 29.7% to reach a staggering $120.3 billion, compared to $92.8 billion in 2021, as reported by Gartner, Inc. Holding onto its dominant position, Amazon secured the top spot in the IaaS market for 2022, with Microsoft, Alibaba, Google, and Huawei trailing closely behind.

“Cloud has been elevated from a technology disruptor to a business disruptor,” said Sid Nag, VP Analyst at Gartner. “IaaS is driving software-as-a-service (SaaS) and platform-as-a-service (PaaS) growth as buyers continue to add more applications to the cloud and modernize existing ones.”

“IaaS growth in 2022 was stronger than expected, despite a slight softening in the fourth quarter as customers focused on using their previously committed capacity to its fullest potential,” added Nag. “This is expected to continue until mid-2023 and is a natural outcome of the market’s maturity. We expect an acceleration in 2024, as there is still room for plenty of additional future growth.

Microsoft followed in the No. 2 position with a 21.5% share, reaching over $25 billion in IaaS public cloud revenue in 2022. Microsoft’s software-first strategy continued to support its IaaS growth as customers required more cloud capacity to support automation, advanced analytics, and digital workplace capabilities.

Alibaba Group again held the No. 3 position with a 7.7% market share, although with modest 2.4% year-over-year growth. While Alibaba continued to lead the IaaS market in China, its limited potential for expansion across global markets has slowed growth, driving its recent decision to spin off its Alibaba Cloud business into a separate entity.

Google saw the highest growth rate of the top five IaaS vendors, growing 41% in 2022 to reach over $9 billion in revenue. Google’s increased investment in sovereign cloud and expanded sales and marketing partner programs helped to broaden its customer base and drive additional IaaS revenue.

Huawei rounded out the top five IaaS vendors with a 4.4% market share and $5.2 billion in revenue for 2022. Since its 2020 pivot to an increased focus on the cloud, Huawei has been steadily growing its IaaS revenue in China and emerging markets.

“Generative AI will continue to drive the cloud market forward, particularly as hyper scalers look to support offerings beyond the existing, democratized generative AI solutions,” said Nag. “As enterprises integrate generative AI into their technology portfolio, new markets and opportunities for cloud hyper scalers will emerge related to sovereignty, ethics, privacy, and sustainability.”

Gartner clients can read more in “Market Share: IT Services, Worldwide, 2022.”

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