The Take: Enterprise Cloud Infrastructure Use Surges

What’s News

Global company spending on cloud-based infrastructure continues to surge, topping $50 billion for the first time in the fourth quarter of 2021.

Data compiled by Synergy Research Group  based on the latest earnings reports shows enterprise spending on cloud infrastructure services up 36% from the fourth quarter of 2020.

Amazon continues to lead the cloud infrastructure market with a steady worldwide market share of around 32-33%. But AWS faces growing competition from Microsoft, which is continuing to grow its market share — up almost nine percentage points since the end of 2017 — that stood at 21% in the fourth quarter. Google and Alibaba also continue to grow market share, while in aggregate the long tail of small- to medium-sized cloud providers see revenues growing steadily but market shares declining.

SAP’s Take

The latest cloud infrastructure spending figures underscore the massive shift by companies across the globe from running enterprise applications and consumer services on their own hardware (on premise) to the cloud.

This trend, which has been accelerated by the global pandemic, reflects the benefits in terms of flexibility, speed and scalability of the move to the cloud, together with the growing imperative for companies to transform into intelligent sustainable enterprises.

Companies that have made the move to the cloud will be best positioned to respond to the challenges and opportunities in their markets in the future, including rapidly changing customer demand, fierce competition and unexpected disruptions like natural disasters, supply chain problems and the next pandemic.

“Cloud solutions enable companies to move faster and be more agile while better meeting modern customer, partner and employee expectations for connectedness and mobility,” says SAP Executive Board Member Scott Russell, who leads SAP’s Customer Success organization. “For this reason, we’re seeing more and more customers move to the cloud, driving the evolution of their end-to-end business processes, like recruit to retire, lead to cash, source to pay and design to operate.”


Contact:
Joellen Perry, Head of Global Public Relations, SAP
+1 (626) 265-0370, joellen.perry@sap.com, PST