Global cloud revenues reached a new record high in 2022, with a growth of 22.9% year-on-year, according to recent research. The Software-as-a-Service (SaaS) Applications sector stood out, accounting for nearly half of the total revenue generated by the global cloud market. Infrastructure-as-a-Service (IaaS) followed behind at 21.2%. These findings come from the latest IDC Tracker figures, which analyze data from 850 cloud services companies across 49 countries.
Out of the $545.8 billion in cloud revenue reported in 2022, SaaS Applications contributed an estimated $246.3 billion. While SaaS Applications and IaaS jointly comprised two-thirds of the market, they experienced a slight decrease in overall market share. This created room for growth in Platform as a Service (PaaS) revenue.
When it comes to market share, AWS continues to lead its competitors, accounting for 40.5% of the foundational cloud services sector. Microsoft follows with 21.5%, while Google Cloud lags far behind with just 6.1%.
According to Rick Villars, Group VP for Worldwide Research at IDC, it would be a misconception to assume that companies are solely focusing on cost-cutting measures. In reality, businesses are still investing in cloud services, driven in part by the significant interest in artificial intelligence.
Looking ahead, Frank Della Rosa, Research VP for SaaS, Business Platforms, and Industry Cloud at IDC, stated that the SaaS Applications sector shows no signs of making room for other sectors, as it continues to generate significant revenue. Della Rosa predicts that the next generation of SaaS applications will leverage advancements in AI to deliver improved personalization, customer experience, and operational efficiency. This is expected to redefine functional markets across various industries.
In conclusion, global cloud revenues have reached a new peak in 2022, driven by the growing demand for SaaS Applications. While SaaS Applications and IaaS have witnessed a slight drop in market share, PaaS revenue has seen growth. AWS remains the market leader, with Microsoft and Google Cloud trailing behind. Businesses are continuing to invest in cloud services, fueled by their interest in artificial intelligence. The future of the SaaS Applications sector looks promising, with advancements in AI expected to enhance performance and redefine market dynamics across industries.
