AI/ML, Cloud migration

Canalys: Public Cloud Growth Shows No Signs of Slowing

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Public cloud will surpass $300 billion in revenue in next 12 months and is continuing to grow at a rate of about 20%. Fueled by AI, It will grow to $590 billion by 2028, according to research from Canalys.

In a LinkedIn post, chief analyst Jay McBain cited Canalys research showing that global expenditure on cloud infrastructure services rose by 19.7% year-over-year, reaching $77.7 billion in Q1 2024. That’s the fastest quarterly growth since Q4 2022, according to Canalys.

Here’s how the top hyperscalers fared last quarter:

1. Amazon Web Services (AWS) achieved a growth of 17.1%, commanding a market share of 32.0%.

2. Microsoft Azure achieved an annual growth rate of 31.1%, consolidating its position as the second-largest player with a market share of 23.3%.

3. Google Cloud's market share increased to 9.2%, with an annual growth rate of 27.5%.

4. Alibaba Cloud experienced year-on-year growth of 33.4%, capturing 4.6% of global market.

In a presentation earlier this year at the Pax8 Beyond conference, McBain noted that, for the channel, each of these dollars spent results in $6 to $7 spend on additional services opportunities, highlighting the expanding potential within these cloud ecosystems for partners.

Much of the growth is driven by AI; though the majority of organizations' data still lives on-premises, most large language models (LLMs) that are the foundation for generative AI solutions reside in the public cloud.

"The connection from cloud to edge will be a massive opportunity to train and tune these models (and get the value out of AI) in the next five years," McBain commented.

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Sharon Florentine

Sharon manages day-to-day content on ChannelE2E and serves as senior managing editor for CyberRisk Alliance’s Channel Brands. She also covers enterprise-class technology companies, strategic alliances and channel partner strategies. Sharon is a veteran tech journalist and editor with more than 25 years experience in the industry, and has previously held key editorial, content and leadership positions at Techstrong Group, CIO.com, Ziff Davis Enterprise and CRN.

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