New data from Synergy Research Group has revealed a significant increase in spending on cloud infrastructure services, with the first quarter of 2024 not only setting a new record but also sending year-over-year growth rates on an upward trajectory.
The company's report revealed that global cloud spending surpassed $76 billion during the first three months of 2024, marking a substantial 21% year-over-year increase of $13.5 billion, and also the second quarter that has experienced considerable year-on-year growth.
According to the data, Amazon, Microsoft and Google can be thanked for a large proportion of spending, which together represent two-thirds (67%) of the market.
Global cloud spending is increasing
Amazon maintains its position as the market leader, according to almost a third (31%) alone. Microsoft (25%) and Google (11%) follow in second and third place.
However, Synergy also saw healthy growth among second-tier cloud providers, including Huawei, Snowflake, MongoDB, and Oracle.
Despite lingering economic and political uncertainties, the cloud market continues to prove resilient, while the increased focus on cloud computing and artificial intelligence suggests the market will still have enough fuel for many more quarters.
Utility IaaS and PaaS services, which Synergy says make up a large portion of the market, saw a notable 23% increase during the quarter, with overall trailing-twelve-month revenue reaching $283 billion.
Without mentioning any geographic regions that performed poorly, Synergy confirmed that the APAC region saw the highest growth of 25%, although the entire region is still behind the US, which remains the largest cloud market.
Looking ahead, John Dinsdale, chief analyst at Synergy Research Group, commented: “We will not return to the growth rates seen before 2022. [up to around 40%], as the market has become too large to grow that quickly, but we will see the market continue to expand substantially. “We anticipate it will double in size in the next four years.”
