Google Cloud, AWS and Azure collectively account for 63% of global cloud infrastructure expenditure, according to a new report from Canalys. Credit: iStock/triloks Fueled by enterprise demand for data analytics, machine learning, data center consolidation and cloud-native app development, spending on cloud infrastructure services jumped 33% year on year to $62.3 billion in the second quarter, according to Canalys. The Singapore-based market research firm said its latest cloud spending research, released Tuesday, shows that demand for cloud services remains strong despite a global economy suffering from inflation, rising interest rates and recession. Google, Microsoft and Amazon collectively made up almost two in three dollars spent on cloud infrastructure around the world last quarter, Canalys noted. The firm defines cloud infrastructure services as those that provide IaaS (infrastructure-as-a-service) and PaaS (platform-as-a-service), either via private or public hosting environments. It excludes direct sales for SaaS (software-as-a-service) applications, but includes revenue from the infrastructure services used to host and operate them. According to Canalys’ figures, AWS alone accounted for about 1/3rd of global cloud infrastructure revenue in the second quarter of 2022, or $19.3 billion out of $62.3 billion overall, representing a 33% year-on-year increase in Amazon’s figures. Azure was in second place, with 24% of the market after 40% annual growth, and Google Cloud took third, with 45% growth accounting for 8% of total market share. Azure’s growth rate means that Microsoft has continued to close in on Amazon for primacy in this market, according to Canalys. A vice president at the research firm, Alex Smith, said that Microsoft’s record number of major deals in the $100 million and $1 billion ranges is the product of a wide product portfolio and tight integration with software partners. “While opportunities abound for providers large and small, the interesting battle remains right at the top between AWS and Microsoft,” he said in a statement announcing Canalys’ results. “The race to invest in infrastructure to keep pace with demand will be intense and test the nerves of the companies’ CFOs as both inflation and rising interest rates create cost headwinds.” Cloud providers build out infrastructure Despite those headwinds, however, both Amazon and Microsoft have continued to aggressively build out capacity, according to the researchers—the latter company has announced 10 new cloud regions, to become available in the next year, and the former has announced eight, divided into 24 new availability zones in the same time frame. According to Canalys research analyst Yi Zhang, demand is likely to continue to increase, as companies move more and more core parts of their infrastructure into it. “Most companies have gone beyond the initial step of moving a portion of their workloads to the cloud and are looking at migrating key services,” he said in a statement. “The top cloud vendors are accelerating their partnerships with a variety of software companies to demonstrate a differentiated value proposition. Recently, Microsoft pointed to expanded services to migrate more Oracle workloads to Azure, which in turn are connected to databases running in Oracle Cloud Related content news Boomi burnishes API management capabilities The launch version of the framework comes with four agents — Boomi Answers, Boomi DesignGen, Boomi DataDetective, and Boomi Scribe. By John Leyden May 10, 2024 4 mins APIs PaaS feature TIAA modernizes the customer journey with AI The financial services organization overhauled its customer service operations, weaving together machine learning models, generative AI, and customer journey mapping to improve customer experience and predict trouble points. By Paula Rooney May 10, 2024 6 mins CIO 100 Digital Transformation Artificial Intelligence feature 10 IT skills where expertise pays the most Data from Dice sheds light on 10 enterprise mainstay skills where IT pros who have honed their craft to expert level can earn five-figure salary premiums. By Sarah K. White May 10, 2024 8 mins Salaries IT Jobs IT Skills feature What is ERP? Enterprise resource planning systems explained Enterprise resource planning (ERP) systems standardize, streamline, and integrate processes across a wide range of business functions. Here’s what to know about these critical IT systems. By CIO staff and bart_perkins May 10, 2024 12 mins ERP Systems Enterprise Applications PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe