Saturday, June 4, 2022

Gartner: Cloud IaaS market grew 41.4% in 2021

The worldwide infrastructure as a service (IaaS) market grew 41.4% in 2021, to total $90.9 billion, up from $64.3 billion in 2020, according to Gartner's “Market Share: IT Services, Worldwide, 2021”.  The report ranks Amazon in the No. 1 position in the IaaS market in 2021, followed by Microsoft, Alibaba, Google and Huawei. These five players account for 80% of the market.

“The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads,” said Sid Nag, VP analyst at Gartner. “Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprises to address emerging needs such as sovereignty, data integration and enhanced customer experience.”

Some notes:

  • Amazon continued to lead the worldwide IaaS market with revenue of $35.4 billion in 2021 and 38.9% market share (see Table 1).
  • Microsoft followed in the No. 2 position with 21.1% share and above-market growth, reaching over $19 billion in IaaS revenue in 2021. With many organizations already relying on Microsoft’s enterprise software and services, Azure has been positioned to capture opportunities across nearly every vertical market.
  • Alibaba was again the No. 3 IaaS public cloud provider worldwide with 9.5% market share and revenue of $8.7 billion for 2021. While Alibaba continues to lead the Chinese cloud market, it is also poised to be the leading regional provider in Indonesia, Malaysia, and other emerging cloud markets, given its local market understanding and ability to serve as a bridge to digital commerce.
  • Google Cloud saw the highest growth rate of the top five IaaS vendors, growing 63.7% in 2021 to reach $6.4 billion in revenue. This growth was driven by steadily increased adoption for traditional enterprise workloads as well as Google’s innovation in more cutting-edge capabilities such as artificial intelligence and Kubernetes container technologies, supported by an expansion of their partner ecosystem to reach a wider customer base.
  • While Huawei’s growth tempered in 2021 after two straight years of over 200% growth, it still maintained the No. 5 market share position with $4.2 billion in revenue. Huawei has made significant investments in its IaaS ecosystem in the past two years, and through an enhanced strategy of open hardware, open-source software and partner enablement it has been able to provide expanded offerings for universities, developers and startups.

Dell'Oro: Data center switch sales up 16% in 1Q 2022

Global data center switch sales grew robustly in 1Q 2022, reaching the second-highest revenue ever captured in the market, just 2 percent below the record sales level achieved in the prior quarter. Arista, H3C, Juniper, Star-net Ruijie, and white box vendors captured most of the growth in the market, according to a recently published report from Dell’Oro Group. Arista grew the fastest and was able to gain more than two points of revenue share during the quarter.

“Despite ongoing supply challenges, the data center switch market continues to perform remarkably well across all major market segments: Cloud Service Providers (SPs), Telco SPs as well as Large Enterprises, with Cloud SPs contributing about 70 percent of the Y/Y increase in sales,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “What was also interesting during the quarter is that despite these supply issues which are impacting all components, all industries, all regions, and all manufacturers, some vendors were somehow able to outperform the market. We would like to note, however, that given elongated lead times that are now exceeding six months on several products,  sales and vendors’ performance reported in 1Q 2022 are a reflection of orders, and in some cases, competitive displacements that happened in the second half of last year,” added Boujelbene.

Additional highlights from the 1Q 2022 Ethernet Switch – Data Center Report:

  • 25 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps comprised nearly 70 percent of the shipments in 1Q 2022 and 80 percent of the revenues as the pandemic has been favoring the new speeds in terms of supply as well as demand.
  • 400 Gbps shipments exceeded 800 K ports during the quarter, despite some deferred revenues at certain Cloud SPs. We expect the 400 Gbps ramp to continue to accelerate this year.