The Canalys report revealed the main activities of Google Cloud, Amazon Web Services (AWS) and Microsoft Azure in the $55.9 billion (+34%) cloud infrastructure services market in the first quarter of 2022.
AWS
Amazon Web Services (AWS) is the leading cloud service provider in Q1 2022 with a 33% share. AWS revenue grew 37%.
AWS expanded its global presence by launching 16 Local Zones in the United States and announcing plans to add 32 additional Local Zones in 26 countries.
AWS announced key customers with a focus on telecommunications companies such as T-Systems, Verizon, and Telefonica. AWS has strengthened its relationship with Tech Mahindra to power an automation platform to accelerate 5G network adoption for telecommunications companies.
Microsoft Azure is the second largest cloud provider in Q1 with 21% market share. Microsoft Cloud revenue increased by 46%.
Microsoft is preparing its new cloud partner program, unveiled last month and launched in October, to boost Azure business through the channel. Amid controversial channel program changes in Microsoft’s New Commerce Experience (NCE), the Cloud Solution Provider program has reached phase two of its rollout, with changes to Azure offerings and new credits and incentives for the partners. Microsoft also announced key wins with global systems integrators including Atos and Fujitsu.
Google Cloud
Google Cloud holds 8% of the market. Google Cloud revenue grew 54% in the first quarter. Google Cloud is focusing on digital sovereignty, analytics, AI and cybersecurity as key differentiators for GCP, advancing its cloud cybersecurity practice with the acquisition of Mandiant.
Google Cloud is investing in expanding its regional data center footprint. Google Cloud taps channel partners to improve customer reach, scale and sales efficiency as it seeks to reduce first-quarter cloud business operating loss of $931 million .
Google Cloud announced a redesign to bring together its ecosystem and channel sales teams and pledged to double spending on its partner ecosystem over the next few years, which includes co-marketing and training.
Systems integrators including Accenture, Atos, Deloitte, HCL Technologies, TCS, Kyndryl, Tech Mahindra and Wipro build practices with tens of thousands of engineers and cloud consultants. This has also included acquisitions of cloud application development and migration specialists, as well as the launch of dedicated cloud services brands.
“As the use cases for cloud infrastructure services grow, the potential complexity increases, and we see hybrid and multi-cloud deployments becoming commonplace in the market,” said research analyst Yi Zhang. at Canalys. “Hyperscalers invest in rapid channel development and partners respond as opportunities develop.”
Synergy Research Group said global cloud revenue grew 34% to $53 billion in the first quarter of 2022.
Q1 market shares for the top cloud providers are Amazon 33%, Microsoft 22%, Google 10%, Alibaba 6%, IBM’s Kyndryl 4%, Salesforce 3%, Tencent 3%, and Oracle 2%.
Other companies with a 1% market share include Baidu, China Telecom, China Unicom, Huawei, Fujitsu, NTT, Rackspace and SAP, according to Synergy Research Group.
