Spending on cloud infrastructure services rose 35% globally to $ 41.8 billion in the first quarter of 2021, according to Canalys data.

“The trend of using cloud services for data analytics and machine learning, data center consolidation, application migration, cloud native development and service delivery has continued at a steady pace.” , Canalys said in an official statement.

Overall, customer spending topped $ 40 billion per quarter for the first time in the first quarter, with total spending increasing by almost $ 11 billion from the first quarter of 2020 and almost $ 2 billion. compared to the fourth quarter of 2020, according to the report.

“The cloud has become a winner across all industries over the past year, essentially since the start of the Covid-19 pandemic and the implementation of lockdowns. Organizations depended on digital services and being online to maintain their operations and adapt to the unfolding situation, ”said Blake Murray, Research Analyst at Canalys.

“Although 2020 saw large-scale cloud infrastructure spending, most enterprise workloads have yet to migrate to the cloud. Migration and spending in the cloud will continue as customer confidence increases in 2021. Large projects that were delayed last year are resurfacing, while new use cases will expand the addressable market. Investing in the edge, including 5G, is a key area, especially for the development of ultra-low latency applications and use cases, such as autonomous vehicles, industrial robotics and augmented reality or virtual, ”Murray added.

Top cloud service providers

Among the major players, Amazon Web Services (AWS) led the list in Q1 2021, with a 32% share of total spend. The service provider grew 32% in the quarter.

“During the last quarter, it announced new CloudFront edge locations in Croatia and Indonesia and extended its wavelength zones for 5G networks in Japan and the United States. It launched its new EX2 X2gd instances based on the AWS-designed Graviton2 processor for memory-intensive workloads and improved price / performance, ”Canalys said.

Microsoft Azure grew 50% for the third consecutive quarter, accounting for 19% of the market share in the first quarter of 2021.

Google Cloud grew 56% in the quarter to account for 7% market share. It continued to grow, benefiting from its Google One approach “generating cross-selling and integration opportunities across its portfolio,” according to Canalys.

Competition among major cloud service providers to capitalize on new opportunities will continue to intensify, according to the report.

“Geographic expansion for data sovereignty and to improve latency, whether through a region-wide deployment or a local point of presence in the city, is an area of ​​focus for cloud service providers,” said Matthew Ball, chief analyst at Canalys.

“But differentiation through the development of custom hardware for optimized compute instances, industry-specific clouds, hybrid IT management, analytics, databases and AI-powered services is increasing. But it’s not just a competition between cloud service providers, but also a race with on-premise infrastructure providers, such as Dell Technologies, HPE, and Lenovo, who have put together competitive As-a-Service offerings. . The challenge will be to demonstrate a differentiated value proposition for everyone, ”added Ball.