'$6 in every $10' spent on cloud infrastructure is with AWS, Microsoft, or Google
(2021/07/30)
- Reference: 1627665367
- News link: https://www.theregister.co.uk/2021/07/30/q2_cloud_infrastructure_services_canalys/
- Source link:
Spending on cloud infrastructure services shot up by more than a third again as workload migration and cloud native applications development sped up, according to the latest research from Canalys.
After AWS filed its latest set of [1]quarterly figures last night, analysts at the channel focused consultancy confirmed that some $47bn was forked out by biz customers on infrastructure-as-a-service (IaaS) in calendar Q2, up 36 per cent year-on-year.
The top three cloud providers accounted for 61 per cent of this total expenditure, [2]said Canalys, and AWS was the frontrunner with a 31 per cent share of the spoils, or $14.57bn.
[3]
On an earnings conference call last night, Amazon CFO Brian Olsavsky said: "Disruptive economic events like COVID have cause many people to step back and think about how they want to change strategically. And many of come to the conclusion that they do not want to own and run their own datacenters."
[4]
[5]
Customer wins in the quarter for AWS include telcos Swisscom and Bell Canada, BMO Financial Group, Grupo Bancolumbia, and Ferrari.
Microsoft's Azure service grew 51 per cent to $10.34bn, giving it a 22 per cent share of total spending in IaaS. The beast of Redmond also flashed its financials this week, showing it made a [6]$165m daily profit in fiscal '21 .
[7]
Third-placed Google grabbed 8 per cent market share in the Canalys ranking, on the back of 61 per cent growth in sales to $3.76bn.
[8]Selling hardware on a pay-per-use or subscription model is a 'lie' created by marketing bods
[9]Rackspace literally decimates workforce: One in ten staffers let go this week
[10]You're not imagining it. Amazon and AWS want to hire all your friends, enemies, and everyone in between
[11]Nvidia dips its toes into IaaS with subscriptions for DGX SuperPOD AI supercomputers
[12]Workday shares slide following claims Amazon ditched company-wide HR system
Google Cloud, which [13]has a new EMEA boss in place to lead the charge [14]following the exit of Chris Ciauri, also managed to clip its operating losses in the quarter to $591m versus an operating loss of $1.4bn a year earlier.
"Across cloud, we will continue to invest aggressively, given the opportunity we see," said CFO Ruth Porat this week in a [15]calendar Q2 earnings call with Wall Street types. "The biggest cloud providers benefited from the dynamics of the lockdown, a trend that continues."
Canalys said the pandemic had exposed "many economic and operational fragilities" in the past year and a half, and organisations that worked on business resiliency planning had "expedited digital transformation projects and increased cloud consumption."
Many grey-haired hardware vendors are trying to counter the cloud generation of corporations by launching their own consumption-based services, including [16]HPE , [17]Dell , and [18]Cisco . ®
Get our [19]Tech Resources
[1] https://www.theregister.com/2021/07/30/amazon_q2_2021/
[2] https://canalys.com/newsroom/global-cloud-services-q2-2021
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/07/27/microsoft_earnings_2021/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2020/10/09/hardware_as_subscription_not_ideal/
[9] https://www.theregister.com/2021/07/23/rackspace_layoffs_offshoring/
[10] https://www.theregister.com/2021/07/21/amazon_aws_recruitment/
[11] https://www.theregister.com/2021/06/01/nividia_dips_its_toes_into/
[12] https://www.theregister.com/2021/07/28/amazon_canned_workday_project/
[13] https://www.theregister.com/2021/07/05/google_cloud_poaches_sap_exec/
[14] https://www.theregister.com/2021/05/18/google_cloud_confirm_departure_of/
[15] https://www.theregister.com/2021/07/28/alphabet_q2_2021/
[16] https://www.theregister.com/2020/12/09/greenlake_hpc/
[17] https://www.theregister.com/2020/10/21/dell_apex_itaas/
[18] https://www.theregister.com/2020/08/13/cisco_to_sell_everythingasaservice_even/
[19] https://whitepapers.theregister.com/
After AWS filed its latest set of [1]quarterly figures last night, analysts at the channel focused consultancy confirmed that some $47bn was forked out by biz customers on infrastructure-as-a-service (IaaS) in calendar Q2, up 36 per cent year-on-year.
The top three cloud providers accounted for 61 per cent of this total expenditure, [2]said Canalys, and AWS was the frontrunner with a 31 per cent share of the spoils, or $14.57bn.
[3]
On an earnings conference call last night, Amazon CFO Brian Olsavsky said: "Disruptive economic events like COVID have cause many people to step back and think about how they want to change strategically. And many of come to the conclusion that they do not want to own and run their own datacenters."
[4]
[5]
Customer wins in the quarter for AWS include telcos Swisscom and Bell Canada, BMO Financial Group, Grupo Bancolumbia, and Ferrari.
Microsoft's Azure service grew 51 per cent to $10.34bn, giving it a 22 per cent share of total spending in IaaS. The beast of Redmond also flashed its financials this week, showing it made a [6]$165m daily profit in fiscal '21 .
[7]
Third-placed Google grabbed 8 per cent market share in the Canalys ranking, on the back of 61 per cent growth in sales to $3.76bn.
[8]Selling hardware on a pay-per-use or subscription model is a 'lie' created by marketing bods
[9]Rackspace literally decimates workforce: One in ten staffers let go this week
[10]You're not imagining it. Amazon and AWS want to hire all your friends, enemies, and everyone in between
[11]Nvidia dips its toes into IaaS with subscriptions for DGX SuperPOD AI supercomputers
[12]Workday shares slide following claims Amazon ditched company-wide HR system
Google Cloud, which [13]has a new EMEA boss in place to lead the charge [14]following the exit of Chris Ciauri, also managed to clip its operating losses in the quarter to $591m versus an operating loss of $1.4bn a year earlier.
"Across cloud, we will continue to invest aggressively, given the opportunity we see," said CFO Ruth Porat this week in a [15]calendar Q2 earnings call with Wall Street types. "The biggest cloud providers benefited from the dynamics of the lockdown, a trend that continues."
Canalys said the pandemic had exposed "many economic and operational fragilities" in the past year and a half, and organisations that worked on business resiliency planning had "expedited digital transformation projects and increased cloud consumption."
Many grey-haired hardware vendors are trying to counter the cloud generation of corporations by launching their own consumption-based services, including [16]HPE , [17]Dell , and [18]Cisco . ®
Get our [19]Tech Resources
[1] https://www.theregister.com/2021/07/30/amazon_q2_2021/
[2] https://canalys.com/newsroom/global-cloud-services-q2-2021
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/07/27/microsoft_earnings_2021/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/paasiaas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YQR2oTiGhmPLFCf@37RY6wAAAIs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2020/10/09/hardware_as_subscription_not_ideal/
[9] https://www.theregister.com/2021/07/23/rackspace_layoffs_offshoring/
[10] https://www.theregister.com/2021/07/21/amazon_aws_recruitment/
[11] https://www.theregister.com/2021/06/01/nividia_dips_its_toes_into/
[12] https://www.theregister.com/2021/07/28/amazon_canned_workday_project/
[13] https://www.theregister.com/2021/07/05/google_cloud_poaches_sap_exec/
[14] https://www.theregister.com/2021/05/18/google_cloud_confirm_departure_of/
[15] https://www.theregister.com/2021/07/28/alphabet_q2_2021/
[16] https://www.theregister.com/2020/12/09/greenlake_hpc/
[17] https://www.theregister.com/2020/10/21/dell_apex_itaas/
[18] https://www.theregister.com/2020/08/13/cisco_to_sell_everythingasaservice_even/
[19] https://whitepapers.theregister.com/
Re: Project Fear
matjaggard
Yeah, that's basically nonsense. Companies are rubbish at running their own infrastructure - moving from a big UK bank to a start up really proved the point to me. Just running a microservice in a docker container in the bank came with a 80% chance of failure per deployment - in AWS it just works fine.
Lorribot
All this cloudy datacenters are great till you have some muppet company that does warehouse controol systems that is still living in the 1970s and does not support patching, needs a minimum of 1ms latency to everything and wants to use Windows NT workstation as that Windows XP is too new, what that virtualisation, thats for those devOps smoke and mirros types, as for Linux well...
Did I mention about not supporting patching? Apparently we need to have test and Dev warehouse set up for that.
Anonymous Coward
That sucks, cos running a data centre sounds like loads of fun. If I had the money I'd build one probably. Use the waste heat for something good like growing things.
Project Fear
They won by projecting fear that businesses are not capable of setting up their own infrastructure.
The has become as self fulfilling prophecy.
The initial cost of setup could be high and then you have added maintenance cost. But it is like with subscriptions. First two years you think you are saving, but then you are locked in and then it turns out you paid many times over of what would it cost to run things on your own (that is on rented or co-located dedicated servers).
The rejection of idea was always down to the fact the people in charge won't be able to blame someone else if something goes wrong.
If you get a service from AWS and it goes down, you can blame AWS. If you run your own, you need to take responsibility and often people prefer to throw money away than work it out themselves (especially if they are VC backed, investors get anxious when they hear "self-hosting"). Provided that the failure is not a data centre fault, you could very likely get your own services up much quicker than anxiously refreshing status pages of cloud providers and not knowing when they'll fix.