Spending on cloud infrastructure services worldwide climbed 19% to $66.4 billion in the first quarter of 2023
According to a survey, the top three cloud service providers—Google (NASDAQ:GOOGL) Cloud, Microsoft Azure, and Amazon Web Services (NASDAQ:AMZN)—soared together by 22% in the first quarter to account for a 64% share of client expenditure. According to market research firm Canalys, Amazon Web Services (AWS) was the top cloud service provider in Q1 and accounted for 32% of overall spending, up by 16% year over year. After expanding by 27% year over year, Microsoft Azure maintained its position as the second-largest cloud service provider with a market share of 23%. In the March quarter, Google Cloud experienced a 30% growth rate and held a 9% market share.
Spending on cloud infrastructure services worldwide climbed 19% to $66.4 billion in the first quarter of 2023. Although the cloud is still one of the IT market's fastest-growing areas, customer investments are slowing down due to ongoing macroeconomic uncertainty, with growth for the first time falling below 20%, according to the research. All of the cloud hyperscalers were negatively impacted, with a four percentage point decline in growth from the quarter before. Companies announced personnel reductions and other internal cost cuts in their cloud operations in reaction to sluggish growth.