Leading public cloud service providers continue to gain market share across the globe. The cloud Infrastructure as a Service (IaaS) market grew 37.3 percent in 2019 to reach $44.5 billion — that’s up from $32.4 billion in 2018, according to the latest worldwide market study by Gartner.
Hyperscale cloud providers and global network carriers have been building stronger relationships and deeper integrations around SD-WAN and networking solutions. The partnerships are a natural fit as more enterprises move business-critical workloads to cloud platforms.
The total number of large data centers operated by hyperscale providers increased to 541 at the end of Q2 2020. Over 70% of all hyperscale data centers are located in facilities leased from data center operators or are owned by partners of the hyperscale operators.
Canalys reports that hyperscale cloud infrastructure services are in a period of sustained growth, with spending up 46 percent in 2018 to more than $80 billion. Expenditure is also forecast to surpass $143 billion in 2020.
In 2019, organizations will make increasing use of hybrid cloud environments to support a range of IT and application requirements. Major cloud providers are responding to the growing demand for hybrid cloud solutions with versions of their public cloud technology designed to be deployed privately, within customers’ data centers.
“Business at the hyperscale operators is booming. Over the last four quarters, their year-on-year revenue growth has averaged 24% and they are investing an ever-growing percentage of their revenues in capex,” said John Dinsdale, a Chief Analyst at Synergy Research Group.
The combined public and private cloud revenues accounted for 48.5 percent of the total worldwide IT infrastructure spending in 2Q18 — that’s up from 43.5 percent a year ago and will account for 46.6 percent of the total worldwide IT infrastructure spending for the full year.
In the IaaS market, the competitive landscape is consolidating around the current leaders. The top four providers are all hyperscale IaaS providers and represent approximately 73 percent of the total IaaS market and 47 percent of the combined IaaS and infrastructure utility services (IUS) market.
The hyperscale datacenters operated by cloud service providers are dramatically altering the market for infrastructure hardware and software. By 2021, cloud service providers will account for 76 percent of cloud-related infrastructure hardware and software spending.