Intelligent CIO Middle East Issue 79 - Page 65

INTELLIGENT BRANDS // Cloud

Global cloud services spend hits US $ 55.9 billion in Q1 2022

Worldwide cloud infrastructure services spending increased 34 % to US $ 55.9 billion in Q1 2022 , as organisations prioritised digitalisation strategies to meet market challenges . The latest Canalys data estimates expenditure was over US $ 2 billion more than in the previous quarter and US $ 14 billion more than in Q1 2021 . The top three cloud service providers have benefited from increased adoption and scale , collectively growing 42 % year on year and accounting for 62 % of global customer spend .

Cloud-enabled business transformation has become a priority as organisations face global supply chain issues , cybersecurity threats and geopolitical instability . Organisations of all sizes and vertical markets are turning to cloud to ensure flexibility and resilience in the face of these challenges . SMBs , in particular , have driven investment in cloud infrastructure services to support workload migration , data storage services and cloud-native application development . At the same time , infrastructure hardware shortages and the threat of further price inflation has spurred many large enterprises to invest in largescale , multi-year cloud contracts to lock in upfront discounts with the hyper-scalers . All the major cloud providers have seen a significant increase in order backlogs as a result , which now total several hundred billion dollars worldwide . This in turn is driving the importance of cloud marketplaces as a sales channel for third-party software and security , as businesses seek to burn down these cloud commitments , further fuelling infrastructure consumption .
“ Cloud has continued to be a hot market and transformation strategies are emphasising digital resiliency to face the market challenges of today and tomorrow ,” said Blake Murray , Research Analyst , Canalys . “ To be effective in resiliency planning , customers are turning to channel partners with the technical and consulting skills to help them effectively embrace hyper-scaler cloud services .”
Top cloud partners are doubling down on certification efforts and skills recruitment around hyper-scaler cloud services . Global systems integrators , including Accenture , Atos , Deloitte , HCL Technologies , TCS , Kyndryl , Tech Mahindra and Wipro , are building practices with tens of thousands of cloud engineers and consultants . This has also included acquisitions of cloud application development and migration specialists , as well as the launch of new dedicated cloud services brands . Smaller consultants , resellers , service providers and distributors are pursuing similar strategies as mid-market and SMB customers also demand support with cloud adoption .
“ As the use cases for cloud infrastructure services expand so does the potential complexity , and we see that hybrid and multicloud deployments are commonplace in the market ,” said Yi Zhang , Research Analyst , Canalys . “ The hyper-scalers are investing in rapid channel development and partners are responding as the opportunities grow .” p
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