Cloud infrastructure services spending increased 32% to US$39.9 billion in Q4 2020, following heightened customer investment with the major cloud service providers and the technology channel, according to Canalys.
For full-year 2020, total cloud infrastructure services spending grew 33% to US$142 billion, up from US$107 billion in 2019. Demand was higher than expected, despite an initial slowdown in large consultative-led projects.
Amazon Web Services (AWS) was the leading cloud service provider again in Q4 2020, accounting for 31% of total spend. After a mixed Q3 in terms of customer performance, AWS had a resurgence in customer investment. This fueled 28% growth year on year for AWS in cloud in Q4 2020.
Microsoft’s Azure growth rate accelerated once again, up by 50% to boost its market share in the global cloud services market to 20%.
Google Cloud was the third largest cloud service provider in Q4 2020, with a 7% share. It reported growth of 58% in Q4 2020。
Alibaba Cloud grew 54% in Q4 2020 to account for 6% of the total market. It remained the leading cloud service provider in the Asia Pacific region, including China.
It updated its hybrid cloud strategy during the quarter, with the launch of its Hybrid Cloud Partner Program and on-premises appliances targeting small and medium-sized businesses. The program will enable partners to plan, design and resell Alibaba Cloud services with free licenses and unlimited CPU cores.
A recent Forrester report used 33 criteria to rank JD Cloud & AI first in the areas of strategy layout, product capability covering AI and machine learning, infrastructure management and operation, as well as market performance for Q4 2020.
The report also determined that JD Cloud & AI is among the few providers who have made progress in both strategy and product perspective while Alibaba is ranked first with the strongest current offering and Huawei on top with the strongest strategy.
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China cloud infrastructure service market share
Cloud infrastructure services spend in China grew 62% in Q4 2020 to US$5.8 billion, according to data from Canalys. Total expenditure broke a new record with an increase of US$2.2 billion compared to Q4 2019 or US$740 million over Q3 2020.
Growth in cloud infrastructure services in China continued to outpace the rest of the world, with the government making it one of its top strategic priorities.
Overall, China was the second-largest market after the US in Q4 2020, accounting for 14% of global market, up from 12% in Q4 2019. The top four cloud service providers were Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu Cloud, which collectively accounted for over 80% of total spending.
Total cloud infrastructure services spending in China grew 66% to US$19 billion in the full-year 2020, up from US$11.5 billion in 2019.
Alibaba Cloud was the market leader with 40% share. It reported growth in the Internet, retail, and public sectors. Hybrid cloud is a key focus in 2021, following the launch of its Hybrid Cloud Partner Program and on-premises appliances.
Huawei Cloud ranked second with a 17% market share. It made progress with e-Gov clouds, as well as Internet, genomics, automaker, and financial services accounts while expanding its ecosystem of consulting partners and developers.
It also launched its Cloud Native 2.0 initiative to enable cloud-native development within enterprise and government customers.
Tencent was third with 15% share. It saw rising demand in government, finance, healthcare, and education sectors. Enterprise expansion is a key focus, with developer enablement initiatives to help identify and deploy cloud-native services.
Baidu AI Cloud was the fourth-largest cloud service provider, accounting for 8% of total spend in Q4 2020. It was boosted by growth in government, enterprise, Internet, transportation, healthcare and financial sectors.
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