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In 2019, the global public services cloud market grew by over 26% in relation to the previous year period hitting a huge $233.4 billion (£176.7bn); this according to the IDC. These findings have come from the IDC’s twice yearly Worldwide Semiannual Public Cloud Services Tracker; and this takes into account any account infrastructure service (IaaS); less commonly known than it’s more widely recognised counterpart Software as a Software (SaaS). The same also includes the Platform as a Service (PaaS).

Their findings have argued that the public cloud services market has incredibly more than doubled in size and popularity since 2016; with the combined revenues of the top five revenue providers for cloud computing (namely Amazon Web Services AWS, Microsoft, Salesforce, Google and Oracle) make up more than a third of the entire market by themselves.

The clear leader in this sector was easily Amazon Web Services who incredibly broke the $10bn mark in their most recent results distributed quarterly and Google are now starting to push forward with their most recent results displaying revenue growth which has pushed them above the $3bn mark. Microsoft themselves have not disclosed their most recent reporting figures but there are many industry experts who believe that they are in-fact second to AWS – without their Azure revenue figures it is difficult to say; but we can try and gain this information through their “commercial cloud” revenues; which have beaten a massive $50bn for the first time ever in their most recent reported results.

However, with regards to SaaS businesses, Salesforce is undoubtedly the leader here with the IDC showing them with a 7.8% market share; compared to Microsoft who are just behind them with 7.4%. Coming up behind them is SAP 4.1%, Oracle 3.7% and Google 3.1%. In terms of the market shares for businesses in the IaaS and PaaS sectors combined; the IDC has found similar results as many of the other analysts out there within the cloud technology industry. AWS holds just over a third of the market (33.6%) according to their tracker; Microsoft a clear second with 18% and a very closely contested third place behind them with Google, Alibaba and IBM all there or thereabouts (4.9%, 4.6% and 4.1% respectively).

The overall market paints perhaps an expected picture with SaaS leading as a service, with almost ⅔ of the market share between them (63.6%) with IaaS in second on 21% and PaaS on 15.4%. SaaS, though, saw an almost 20% growth in their year on year performance even though its share of the market was down from 66.9% in 2018.

Deepak Mohan, IDC research director of cloud infrastructure services explained that:

“Today’s economic uncertainty draws fresh attention to the core benefits of IaaS – low financial commitment, flexibility to support business agility, and operational resilience,”. He continued: “Cost optimisation and business resilience have emerged as top drivers of IT investment decisions and IaaS offerings are designed to enable both. The Covid-19 disruption has accelerated cloud adoption with both traditional enterprise IT organisations and digital service providers increasing use of IaaS for their technology platforms” 

In addition to this; the IDC also explained that they think that IaaS and PaaS will continue to grow at a rate that is higher than the rest of the cloud market over the next few years. This is something that many analysts have forecast and there is now particular need for resilience and flexibility not just for the businesses within those industries but the businesses across the world that use their services. Especially since the Coronavirus pandemic.

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