Microsoft and Amazon Web Services (AWS) shared the top spot as the global public cloud services industry rose 24.1 percent year over year to $312 billion in 2020, according to the International Data Corporation (IDC).
Spending began to consolidate in 2020, with the top five public cloud service companies (Amazon Web Services, Microsoft, Salesforce.com, Google, and Oracle) accounting for 38% of global revenue and rising at a 32% compound annual rate.
Microsoft and AWS now share the top spot in the entire public cloud services industry, with both firms accounting for 12.8 percent of sales for the year, thanks to an expanding range of SaaS and SISaaS offerings.
Infrastructure as a Service (IaaS), System Infrastructure Software as a Service (SISaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) are all segments of the public cloud computing sector (SaaS),
“Public cloud access to shared storage, info, and application services was crucial in assisting organizations and individuals in navigating the disturbances of the previous year,” said Rick Villars, group vice president, Worldwide Research at IDC.
While the public cloud services industry as a whole is expected to expand at a 24.1 percent compound annual growth rate in 2020, the IaaS and PaaS segments have steadily risen at even faster rates.
“Cloud service providers are increasingly extending their portfolios of infrastructure and platform capabilities to handle secure storage, high-performance computing, and mixed deployment scenarios,” said Dave McCarthy, vice president, Cloud, and Edge Technology Services.
With $148 billion in 2020 sales, SaaS apps are the biggest and most developed category of public cloud.
“Demand for SaaS apps is dominated by a small number of providers who account for 65 percent of the overall business,” said Frank Della Rosa, research analyst, SaaS and Cloud Software.
According to the survey, the top five firms (AWS, Microsoft, Google, Alibaba, and IBM) accounted for more than 51% of global sales in the combined IaaS, SISaaS, and PaaS markets.