Contact Us

Cloud services and infrastructure spending breaks $150bn in six months, says Synergy


While spending across cloud infrastructure may be suffering something of a minor blip, cloud services spending appears to be shoring things up.

The latest analysis from industry analyst Synergy Research shows that, for the first half of 2019, operator and vendor revenues broke $150 billion, at a rise of 24% year on year.

Infrastructure as a service (IaaS) and platform as a service (PaaS), led naturally by the hyperscalers of Amazon Web Services, Microsoft Azure and Google Cloud, was the fastest growing segment at over 40%, while hosted private cloud, led by IBM, Rackspace and NT, grew at over 20% year on year. When it came to cloud-based software, such as enterprise SaaS and unified comms as a service (UCaaS), growth was in the 25% range yearly.

In aggregate, Synergy noted, spending on cloud services was now ‘far greater’ than spending on supporting data centre infrastructure. Despite this, areas such as public and private cloud infrastructure hardware and software, as espoused by Dell EMC, HPE et al, grew at just over 10% year on year.

“Cloud is increasingly dominating the IT landscape,” said John Dinsdale, a chief analyst at Synergy. “Cloud has opened up a range of opportunities for new market entrants and for disruptive technologies and business models. Amazon and Microsoft have led the charge in terms of driving changes and aggressively growing cloud revenue streams, but many other tech companies are also benefiting.

“The flip side is that some traditional IT players are having a hard time balancing protection of legacy businesses with the need to fully embrace cloud,” Dinsdale added.

Synergy issued a note last month which found hyperscaler capex was down 2% based on year-by-year figures. While the most recent quarter saw more than $28 billion in spending, a primary cause was seen to be China’s expenditure declining by 37% year on year. in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.

Related Stories

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Consent to display content from Youtube
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound