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.
