Cloud now bigger than Dell, HPE, Lenovo, Cisco COMBINED
- Reference: 1597818493
- News link: https://www.theregister.co.uk/2020/08/19/idc_semiannual_public_cloud_services_tracker_h2_2019/
- Source link:
IDC defines “cloud” as the combination of software-as-a-service, infrastructure-as-a-service and platform-as-a-service (SaaS, IaaS and PaaS). The firm rates AWS, Microsoft, Salesforce.com, Google, and Oracle as the five leaders by revenue, suggesting they won more than a third of all revenue and grew it by 35 percent in 2019. By contrast, the entire cloud market grew by 26 percent.
By way of contrast, a third of $233.4bn is $77bn. Intel’s 2019 revenue was $71.9bn and IBM’s was $77.1bn. Or to look at it another way, global cloud spend surpassed the combined revenue of Cisco ($51.9bn), Dell ($90.6bn), HPE ($30.1bn) and Lenovo ($51.4bn), which collectively hauled in $224bn.
IDC found SaaS is the largest of its three cloudy segments, accounting for $122bn of spend (plus another $26bn for underlying infrastructure).
Here’s the data from IDC’s Worldwide Semiannual Public Cloud Services Tracker for H2 2019, with revenue in US$ billions.
Segment
2019 Revenue
Market Share
2018 Revenue
Market Share
YoY growth
IaaS
$49.0
21.00%
$35.4
19.10%
38.40%
PaaS
$35.9
15.40%
$25.8
14.00%
38.80%
SaaS
$148.5
63.60%
$123.9
66.90%
19.80%
Totals
$233.4
100%
$185.2
100%
26.00%
Sharp-eyed readers may have noticed that while SaaS is the top category by spend, it is growing more slowly than IaaS and PaaS. IDC suggests SaaS will get a boost from the COVID-19 pandemic. The firm believes the plague will help IaaS and PaaS spend, too, but that its growth is now a secular trend as buyers turn to the cloud for the combination of flexible purchasing and resilience.
Which is why The Register mentioned Cisco, Dell, Lenovo and HPE above, because all have hardware-centric portfolios and are trying to find ways to sell it with cloud-like consumption options.
At least IBM has a cloud of its own, and Intel looks to still have many cloudy customers. ®
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So the numbers are in
Everyone is going to The Cloud (TM) and, lo and behold !, now The Cloud (TM) is where the big money is being made.
What a surprise. Not.
Cloud evangelists have been pushing us in that direction for at least a decade already. It's no surprise that, with the largest multinational corporations throwing tens of billions into The Cloud (TM) and refining their offerings every year, that money is to be made there.
We're back to the mainframe server paradigm of the 70s and 80s, except that now, the mainframe belongs to someone else, you only get a slice of it, you can't discuss conditions and, when your link goes down for whatever reason, you can only wait for the mainframe operator to resolve the issue. Oh, and if you have trouble, a million other people probably do as well.
Yay progress.
Re: So the numbers are in
"We're back to the mainframe server paradigm of the 70s and 80s"
Maybe in a simplistic diagram or for a SaaS provider, but the IaaS/PaaS providers provide more flexibility than mainframes ever did both in terms of access and scalability while SaaS providers tend to be more flexible around licensing. While there maybe issues around lock-in or migrating between providers the costs of doing so still look tiny compared to platform swaps in the mainframe world.
Big cloud, big storm