A new study from Gartner revealed that the spending on public cloud infrastructure as a service (IaaS) have risen 41% in 2020.
Indeed, it was reported that hyperscale providers are building distributed cloud and edge solutions and extending the public cloud’s reach into private and on-premise locations, thus responding to the needs of organisations relating to data sovereignty, workload portability and network latency. Thus, this led to another year of digital market growth in 2020.
The study showcased that Amazon remains at the top place by being the largest IaaS provider, followed closely by Microsoft, Alibaba, Google and Huawei. These five organizations then make up for 80% of the IaaS market.
Amazon was stated to earn around $26.2bn of revenue from its IaaS business in 2020, which is 41% of the market share. Microsoft is in second place, earning $12.7bn in 2020, which is an increase of almost 60% compared to the previous year.
The report thus underlined that the disruption in the workplace during the pandemic increased the demands to migrate mission-critical workloads, including healthcare applications with AI-assisted bots, digital twins in manufacturing and e-commerce in retail.