How much of the world’s IT is in the cloud? AWS CEO, Adam Selipsky, estimates that it’s still “in the 10-15% range”. There's a 💡 “huge amount of workloads” that are still moving to the cloud, and we've barely scratched the surface of cloud potential.
Amazon Web Services (AWS) CEO explains that “somewhere in the realm of 10% of IT has moved to the cloud. And people think it's a lot higher than that…but they forget that there are a lot of IT dollars spent in the world. There's maybe several trillion dollars of IT spent per year.
Even though a lot of dollars have moved, we're probably still only in the, you know, 10-15% range. That means there's a huge amount of workloads that are still going to be moving to the cloud for years to come.”
📈 Cloud is on a relentless upward trajectory
This week's forecast from IDC pegs global public cloud services revenue at $663 billion in 2023, a 20% growth from 2022. Expectations are similarly high for 2024, with a projected five-year CAGR of 19.4%, leading to a staggering $1.34 trillion by 2027.
Here's the revenue breakdown for the first half of 2023:
IaaS - $64.4 Bn (20%)
PaaS - $56.8 Bn (20%)
SaaS – Applications - $141.2 Bn (45%)
SaaS – System Infrastructure Software - $53.2 Bn (17%)
The top 5 public cloud providers - Microsoft, AWS, Google, Salesforce, and Oracle - continue to dominate, holding a 41% global market share combined, virtually unchanged YoY.
🎯 Cloud innovations will only accelerate
“Cloud has become essentially indispensable,” highlights Sid Nag, VP Analyst at Gartner, projecting cloud growth at 20.4% in 2024.
“However, that doesn’t mean cloud innovation can stop or even slow. The tables are turning for cloud providers as cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models.”
⚡️ AI is pushing cloud boundaries
AWS CEO likes to remind companies that to adopt AI at scale, they need models to access their proprietary data, requiring cloud adoption.
IDC's research VP, Dave McCarthy stresses, "Organizations recognize the importance of staying at the forefront of technological advancements, like generative AI or real-time analytics... The cloud's dynamic nature and the continuous evolution of cloud services make it an ideal platform for organizations to adopt new technologies."
📊 $4.7 Trillion Global IT is Driven by Partners
On a broader scale, Canalys recently estimated global IT spend to reach $4.7 trillion in 2023. Partners play a major role both in cloud and in global IT.
They project partner-delivered IT technologies and services will exceed US$3.4 trillion in 2023, accounting for more than 70% of the global total addressable IT market.
How are you leveraging this transformative shift in the cloud to drive your partnerships strategies and customer outcomes?
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