CoreSite: Direct Public Cloud Interconnection is a “Must Have”

Direct connections to major public clouds is now a prerequisite for colocation data center operators, according to a new report published by CoreSite, which is now a subsidiary of American Tower.

This annual report examines the latest data center and cloud computing trends, strategies, requirements and other findings from an annual quantitative survey and in-depth interviews with senior IT decision-makers.

According to Matt Senderhauf, Vice President of Interconnection Strategy for CoreSite, “The way that businesses connect with each other is constantly evolving, and they require more efficient and automated ways to make today’s digital supply chain work. Similarly, public cloud providers want to deliver their services to customers in a more efficient manner. Direct network and cloud connections deployed in secure colocation data centers, like those offered by CoreSite, provide the perfect ecosystem for cloud providers to reach the most end users and for those end users to connect to the public clouds securely, with the highest performance and lowest cost.” 

Direct Public Cloud Interconnection

* Direct Public Cloud Interconnection is a “Must Have” – 94% of IT leaders say native, direct connection between colocation data centers and major cloud providers is essential for improved performance, enhanced security, cost savings and hybrid cloud connectivity.

* Security is The Top Attribute Sought in a Colocation Provider – While performance, scalability, ecosystem and total cost of ownership are among the most important attributes in choosing a colocation provider, top decision-makers rank security as the most important in 2023.

* Colocation Successfully Supports Critical Workloads, including AI/ML – 92% of IT leaders are considering moving critical workloads from public cloud to colocation to accelerate revenue growth and support the increasing need for AI/ML.

* The Prevalence of Hybrid IT Infrastructure – Survey results show that nearly 97% of CIOs have implemented or plan to implement a hybrid cloud model.

https://www.coresite.com/2023-state-of-the-data-center-report

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Digital Realty's first NVIDIA DGX H100-ready data center

Digital Realty’a newest data center in Osaka, Japan, has been certified NVIDIA DGX H100-ready as part of the NVIDIA DGX-Ready Data Center program. The KIX13 facility has been accredited for its ability to provide a dedicated, robust, and resilient environment optimized for intensive computing systems deployments at scale.

NVIDIA’s DGX H100 is the foundation of NVIDIA DGX SuperPOD for deep learning AI models. 

Digital Realty was one of the first data center providers to be awarded the "DGX-Ready Data Center" certification at the launch of the program in 2019 and currently operates DGX-Ready data centers in more than 20 markets worldwide, including six sites across Asia Pacific.

"Organizations looking to implement enterprise AI are investing in accelerated computing infrastructure – including hardware and software purpose-built for AI – to deploy their models into production quickly," says Charlie Boyle, Vice President, DGX systems, NVIDIA. "With the certification of Digital Realty's new KIX13 facility in the DGX-ready data center program, customers have access to a flexible, simple option for deploying the world's leading AI platform."

"Digital Realty understands the impact AI will have on the way businesses drive digital transformation in the years to come. However, business breakthroughs made possible with AI can only be realized if enterprises are able to integrate the technology into their operations, and that is where we come in," says Chris Sharp, Chief Technology Officer, Digital Realty. "With Digital Realty's KIX13 DGX-Ready Data Center certification, we remain focused on delivering a meeting place that allows our customers to accelerate innovation and growth."

https://investor.digitalrealty.com/news/news-details/2023/Digital-Realty-Announces-Its-First-NVIDIA-DGX-H100-Ready-Data-Center/default.aspx

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Iberdrola to deliver clean power to Vodafone in Germany, Portugal, Spain

Vodafone signed power purchase agreements (PPA) with Iberdrola to deliver clean energy in Spain and Portugal, adding to a recent agreement in Germany.

In total the PPAs will see Iberdrola provide Vodafone with 410 gigawatt-hours (GWh) of clean, renewable photovoltaic (PV) solar energy per year in the three countries, helping to accelerate Vodafone’s net-zero journey whilst increasing its energy security.

* For Vodafone Portugal, the PPA will provide the energy from the newly built Velilla solar PV plant located in Palencia, Spain.

* A further PPA agreement for Vodafone Spain will deliver 280 GWh per year from the newly constructed Cedillo PV plant located in Cáceres, Spain.

* For Vodafone Germany, a PPA was agreed last week to supply the full energy produced from the Boldekow PV plant, Iberdrola’s first solar project to be developed in the country. The plant will have a total capacity of 56 MWp and will be built in the state of Mecklenburg-Western Pomerania. It will be fully operational by 2024. 

Joakim Reiter, Vodafone Group Chief External & Corporate Affairs Officer, said: “These agreements across Europe underline Vodafone’s commitment to ensure our customers will continue to benefit from electricity purchased 100% from renewable sources. They also provide Vodafone with improved energy security and long-term price certainty as we work towards achieving net-zero in our operations by 2030.”

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Vodafone looks to Qwilt and Cisco for Open Caching

Vodafone has selected Qwilt and Cisco to deploy their content delivery network (CDN) solution to increase the quality and capacity of Vodafone’s streaming delivery to its mobile and fixed broadband customers across Europe and Africa.

The solution, comprised of Qwilt’s Open Edge platform and Cisco’s Edge technology, provides Quality-as-a-Service content delivery by pushing content caching and delivery far out to the embedded edge of the network. 

Following a successful trial in Italy, Vodafone will initially start deploying the service in seven countries across Europe and Africa. The roll-out of services will progressively ramp up as Qwilt and Cisco work with additional service providers worldwide in a move to create the world’s largest federated CDN. 

Giorgio Migliarina, Products and Services Director, Vodafone Business, said: “Our partnership with Qwilt and Cisco enables Vodafone and its broadcast partners to deliver a superior streaming service to customers. It means less buffering and lower latency services for the end user.

https://www.qwilt.com/vodafone-partners-with-qwilt-and-cisco-to-deploy-open-caching-improving-streaming-services-for-millions-of-customers-across-europe-and-africa/

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Comcast milestone: 100,000 Digital Nodes deployed

Comcast has surpassed 100,000 rPHY digital nodes deployed across its nationwide network. The rollout began in 2019, surpassing 50,000 rPHY nodes deployed across the network in 2022. The pace continued to increase in 2023, with the organization upgrading 25 percent of its footprint to date.

Digital nodes are a critical part of the distributed access architecture (DAA). The upgraded technology will also be instrumental in Comcast’s implementation of Full-Duplex DOCSIS 4.0, supporting multi-gig symmetrical speeds that will be available to the first customers in Q4 2023.

Comcast said the node upgrades are part of its broader DAA and virtualization journey, which has included world’s first activation of a virtualized cable modem termination system (vCMTS) powered by Full Duplex DOCSIS 4.0 technology in 2021. Since then, Comcast has implemented vCMTS technology across its network and continues to improve the platform to deliver even greater capacity, reliability, visibility, and security.

“But what’s more exciting about our continued commitment to deploying network innovation, as evidenced by the digital nodes across our network, is the immediate benefits it delivers to our Xfinity 10G Network customers with respect to speed, reliability, sustainability and scalability,” said Elad Nafshi, EVP & Chief Network Officer at Comcast Cable.

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Keysight intros Source Measure Unit for semiconductor characterization

Keysight Technologies introduced a Source Measure Unit (SMU) solution to speed semiconductor characterization.

The new PZ2100 Series High-Channel Density Precision Source Measure Unit (SMU) Solution, simplifies channel stacking and synchronization to remove integration and coding complexity. It offers up to 20 SMU channels in a 1U full-width form factor that does not require cooling spacers when stacked. The solution is available in five SMU module options that are configurable and upgradeable.

Toshio Kimura, General Manager for Furukawa Electric's Next Generation Components Development Department, Next Generation Photonics Business Innovation Project Team, said: "By embedding Keysight's PZ2100 High-Channel Density Precision SMU into our test system, it increases our test throughput for developing and mass-producing optical components for broadband, long-distance transmission.”

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STL supports Windstream’s fiber expansion

STL is working with Windstream Wholesale to support their large-scale fiber expansion projects.

The collaboration started in February 2021, when the STL began providing Optical Networking Solutions to Windstream. Building upon this foundation, STL has expanded its offering set to provide advanced optical designs like high-fiber count Intelligently Bonded Ribbon and Flat ribbon, in addition to its loose tube optical cables. These products are designed to ensure faster rollout, superior network longevity, and high scalability, aligning perfectly with Windstream Wholesale's requirements for metro, and long-haul optical networks, which currently provide up to 400G wave services to its customers and will support 800G transmission in the future.

“For us, it is a top priority to deliver the best reach and customer experience to our consumers, including the world’s largest hyperscalers,” said Buddy Bayer, President of Windstream Wholesale and Enterprise. “And we want to do it fast. Windstream sets the bar high in terms of technology and engineering and we are confident that STL, with nearly 30 years of Optical expertise and global footprint, will ably support our connectivity ambitions. It's a bonus that both companies are also equally committed to rural broadband.”

 “STL and Windstream are extremely well positioned to take advantage of future market opportunities such as the $42 billion Broadband Equity, Access, and Deployment (BEAD) Program,” said Jeff Small, President of Kinetic by Windstream. “Kinetic is committed to bringing the fastest, most reliable internet service to residents in under-connected communities using the best construction materials manufactured here in America.”

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Ooredoo Qatar demos first data call in 5G SA with Nokia

Ooredoo Qatar, in collaboration with Nokia, carried its first data call in 5G SA mode in the capital city of Doha. Nokia AirFrame servers, Cloud Mobility Manager, Cloud Mobile Gateway, and CloudBand Application Manager were used to conduct the 5G SA data call. 

The 5G SA will allow Ooredoo Qatar to provide an enriched experience for low-latency applications and use cases that need to be managed remotely in real time. 

In another country-first, Nokia 5G Standalone Core has enabled 5G devices that are VoNR-capable to make and receive supreme quality voice and video calls over a pure dedicated 5G Standalone network. 

Nokia said its 5G SA solution also enables faster call setup, faster simultaneous data services and enhanced network reliability compared to Voice over LTE (VoLTE) for Ooredoo’s customers. 

Samar Mittal, head of Cloud and Network Services (CNS), MEA market at Nokia, said: “5G SA is essential to deliver several 5G use cases like Augmented Reality, Virtual Reality, and Industry 4.0, among others. The successful data call in 5G SA reiterates the strength of our 5G solutions that enable service providers to ensure the best-in-class experience for its subscribers.”

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Ericsson showcases energy-smart 5G site

Ericsson unveiled a new smart and sustainable 5G site featuring its ultra-lightweight mid-band Massive MIMO AIR 6419, RAN Processor 6651 along with Enclosure 6160, which comprises of a Solar shelf 6670, lithium-ion Batteries 6612, and Controller 6610 for hybrid energy operation and control.

The site will feature advanced capabilities such as load shifting, peak shaving, and demand response which enables the site to effectively utilize batteries when electricity rates are high and recharge the batteries when electricity rates are lower.

The company says this setup has the potential to be fully operated by solar energy, complemented by integrated Lithium-ion batteries, for up to a 24-hour period. 

We're thrilled to announce this smart-sustainable 5G site, which serves as a tangible proof point of Ericsson's leading position in building sustainable mobile networks," said Kevin Zvokel, Senior Vice President and Head of Networks, Ericsson North America. "Operators can now utilize untapped assets, thanks to this technology, creating new energy cost savings opportunities."

https://www.ericsson.com

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Celestial AI appoints Bethany Mayer to Board

Celestial AI, a start-up developing an optical interconnect for disaggregated, exascale compute and memory clusters, appointed Bethany Mayer to its Company’s Board of Directors.

Ms. Mayer currently serves as Chair of the Board at Box, Inc. and also serves as an independent board member at Sempra Energy, Lam Research and Ambri. In addition, she is an executive advisor with Siris Capital Group LLC. She previously served on the boards of Marvel Technology and Pulse Secure.

Ms. Mayer was formerly the president and CEO of Ixia, which was acquired for $1.7B by Keysight Technologies in 2018. Prior to Ixia, she served as the senior vice president and general manager of HP’s $2.5B Networking business unit, which she grew for 14 consecutive quarters. In addition, she served as vice president, marketing and alliances for HP’s Enterprise Servers Storage and Networking Group. Ms. Mayer also served as senior vice president of marketing and alliances for Blue Coat Systems and held leadership roles at Cisco Systems and Apple. 

https://www.celestial.ai

• Earlier this month, Celestial AI announced $100 million in Series B funding.

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Ribbon appoints Joni Roberts as CMO

Ribbon Communications appointed Joni Roberts as Chief Marketing Officer, SVP, reporting to Chief Executive Officer Bruce McClelland.

Ms. Roberts previously served as Vice President of Sales and Business Development for North America at RAD Data. Prior to RAD, she ran a global sales team at ADVA where she spearheaded efforts to open new markets in Latin America. Ms. Roberts had held senior positions at Fujitsu, Coriant, Dell, and Nortel.

https://www.rbbn.com

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euNetworks delivers long-haul backbone for Inter.link’s NaaS

euNetworks will provide long haul capacity to Inter.link GmbH, a global Network-as-a-Service (NaaS) and internet connectivity provider.

Under the multi-year deal, euNetworks has delivered long haul connectivity covering Germany, Austria, Czech Republic, Finland, Sweden, the Netherlands, France, Switzerland, Spain, Italy, the UK and Ireland, as well as metro Dark Fibre in Berlin, Frankfurt and Vienna. This infrastructure delivery - Inter.link’s core backbone in Europe - includes Inter.link measuring the associated carbon impact of euNetworks’ services, supporting Inter.link’s commitment to building a sustainable and automated connectivity platform internationally.

Inter.link is scaling up its network infrastructure by adding  26 new European points of presence.

“We’re delighted to be expanding our relationship with Inter.link and supporting the team as they move forward with their exciting growth plans,” said Paula Cogan, Chief Executive Officer of euNetworks. “We value the trust Inter.link has put in euNetworks and the close alignment and commitment both companies have to the sustainable growth of the European bandwidth market. We look forward to developing this partnership to enable and support Inter.link’s customers as their bandwidth needs grow, and their sustainability strategies develop.”

“It is an exciting growth phase here at Inter.link as we build our global platform for delivery of automated connectivity solutions,” said Theo Voss, CEO & Co-Founder of Inter.link. “We needed to work with a backbone provider who is committed to and actively investing in Europe’s future critical infrastructure, offers a unique solution in the market, has a strong track record in best-in-class service delivery and demonstrates alignment to our ESG values. euNetworks consistently delivers in all those areas and is the only bandwidth infrastructure provider able to deliver measured carbon impacts on network projects and their services. We look forward to collaborating further as we move forward with our connectivity plans.”

https://eunetworks.com/

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Infrantil to acquire 80% stake in Console Connect

Infratil acquire an 80% stake in Console Connect, which is a subsidiary of HKT Limited, a leading telecommunications company in Hong Kong, for US$160 million.

Console Connect is a top-3 global software-defined interconnection platform offering next-generation automated connectivity solutions. The Console Connect platform makes connecting to data centres, partners, clouds, and other applications simple and secure, with fully automated switching and routing.

Console Connect has been a top 10 Tier 1 network globally for the last 5 years, serving ~17% of all internet traffic and reaching over 150 countries. Integration with an owned Tier 1 IP network, as well as long-term integrated access to a global backbone network, provides a clear point of differentiation for Console Connect given its extensive network coverage and superior unit economics.

Infratil will also enter into a strategic partnership with HKT, with both jointly investing up to US$295 million over a 2-year period following completion of the acquisition to accelerate Console Connect’s growth through:

• Joint sales and marketing via an HKT-supported approach to offer critical fibre infrastructure and IP access to its existing and new enterprise & wholesale customers.
• Investment in new subsea cable systems and network development to increase Console Connect’s network capacity, resiliency, and reach.

Infratil CEO, Jason Boyes, said the investment in Console Connect builds Infratil’s presence in Asia and is complementary to its digital infrastructure investments globally, which include CDC Data Centres, One NZ, Kao Data in the United Kingdom, and Clearvision Ventures in the US.

“Console Connect is a leading global software-defined interconnection platform, and this acquisition is a continuation of our conviction in the tailwinds of the digital infrastructure sector. It enables us to invest in building a next generation platform to support underlying growth in the demand for digital infrastructure and global connectivity solutions by enterprise and wholesale users”.

HKT’s Group Managing Director, Susanna Hui, said: “Over the past few years, the team at Console Connect has successfully developed it into a world leading platform. We are pleased to have found a like-minded partner in Infratil who is excited about the potential opportunities to continue growing Console Connect. Our partnership around Console Connect, investing in the platform as a standalone operation, will deliver material benefits to the business as well as to HKT shareholders through unlocking value and further developing economies of scale.”

https://www.consoleconnect.com

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Arrcus adds financial backing from Hitachi Ventures

Arrcus, a hyperscale networking software start-up based in San Jose, California, announced a significant new investment from Hitachi Ventures in an additional closing of its Series D funding round. 

Hitachi Ventures' investment will bolster Arrcus' mission to revolutionize the networking industry through innovative software-driven solutions. With increasing adoption of Arrcus routing and switching solutions by Fortune 500 and Global 2000 customers, Arrcus and Hitachi Ventures are excited about the potential for creating complementary solutions for enterprise and service provider customers.

"We are thrilled to welcome Hitachi Ventures as our latest investor into our Series D and value this partnership. Hitachi Ventures’ deep industry expertise and reach will strengthen our position as a leading provider of software-driven networking solutions," said Shekar Ayyar, chairman and CEO of Arrcus. "This investment further validates our innovative technology and signifies the immense market potential for which we are staking a claim."

Hitachi Ventures brings an exceptional track record of successful investments in cutting-edge technology companies and a wealth of knowledge in enabling digital transformations across various industries. The partnership helps solidify Arrcus’ position as a foundational infrastructure provider to leading corporations, paving the way for future growth and expansion.

https://www.arrcus.com

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Oklahoma’s KAMO Power deploys Infinera’s XTM

KAMO Electric Cooperative (KAMO Power) is deploying Infinera’s XTM Series on its 2,700-route-mile rural network to serve its 17 member cooperatives across northeast Oklahoma and southwest Missouri. 

Infinera said the KAMO Power XTM Series deployment flexibly supports both legacy services and modern Ethernet-based services over a 100G-enabled flexible-grid ROADM-based network. Leveraging an open optical architecture, KAMO Power can seamlessly scale its network to support 400G transmission speeds and beyond to meet future capacity needs while also supporting third-party wavelengths if required. The deployment also utilizes the disaggregated architecture of the XTM Series to provide a highly flexible yet compact network design with low power consumption.

“As Infinera’s channel partner in this KAMO Power deployment, BlueAlly complements the Infinera XTM Series solution with additional IP solutions and an extensive service offering covering all aspects of the network,” said Maria Will, SVP, Telecom and Broadband at BlueAlly. “With initial network design expertise and a combination of pre-staging, installation, and commissioning services, BlueAlly is able to quickly and seamlessly bring KAMO Power an outstanding rural broadband network with minimal impact to their existing network operations.”

“Infinera’s XTM Series is ideal for rural broadband networks, delivering reliable and cost-effective network connectivity that can scale to meet demand, which is critical for cooperatives like KAMO Power,” said Nick Walden, Senior Vice President, Worldwide Sales, Infinera. “With Infinera’s XTM solution, KAMO Power can offer a wider range of capacity and provide new services to its cooperative members.”

www.infinera.com

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Philip Jansen to step down as CEO of BT

Philip Jansen announced his intention to step down as CEO of BT at an appropriate time within the next 12 months.

BT’s board of directors has begun the search for his replacement.

Philip Jansen, Group Chief Executive said: “We’ve made a lot of progress over the last four and half years and I’m proud of what we’ve achieved to date. We’re investing heavily in both BT’s and the UK’s future. We’re building like fury, have now passed over 11m homes with fibre, have got 5G service to 68% of the country and our customer service is much improved. This is creating a much stronger BT Group which is starting to drive growth for both investors and the UK. But there’s a lot more to do and I am fully committed to driving the business forward until I hand over to my successor.”

https://newsroom.bt.com/chief-executive-succession-process/

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Mitsubishi Heavy acquires Concentric for DC power infrastructure

Mitsubishi Heavy Industries has acquired Concentric, a provider of industrial power solutions in North America. Financial terms were not disclosed.

Dr. Hitoshi Kaguchi, Senior Executive Vice President at MHI said: "We are delighted to add Concentric to our growing portfolio for Smart Infrastructure Solutions. Combining MHI's technology capabilities with an experienced national service provider immediately benefits facilities across North America, and provides us with a platform to serve the globe. All facilities from data centers to logistics and manufacturing factories must be able to maintain sustainable, uninterruptible power in order to remain competitive in the 21st century."

Founded in 2000 and headquartered in Carrolton, Texas, Concentric provides critical power systems for data centers, telecommunications, utilities, and commercial facilities, as well as motive power solutions for electric forklifts, automated guided vehicles, and airline ground support equipment.

John Winter, Chief Operating Officer at Concentric said: "We have spent the last two decades building no-interruption power and equipment services for material handling and critical power customers across North America. Joining the MHI group accelerates Concentric's mission to bring sustainable, proactive power systems and maintenance to facility leaders nationwide. Our forklift power customers have been converging towards energy storage for years. MHI's capabilities, including their cooling technologies and zero emission power generation systems, ensure our team is ready to serve their needs and achieve growth across the data center market. We have a shared vision to build the most advanced, clean and efficient power solutions."

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Telstra commercial 5G sites go live with Ericsson Cloud RAN

Telstra is the first operator in the world to activate Ericsson’s Cloud Native Infrastructure solution (CNIS) for Cloud RAN in a live commercial 5G network. 

CNIS is a bare metal infrastructure that is specifically optimized for hosting cloud-native 5G applications both at central data centers and at the edge. 

Ericsson says the combination of Cloud RAN running on CNIS as a system-verified solution reduces Telstra’s deployment and operational risks and ensures the best mobile network performance for Telstra’s customers.

With Ericsson’s Cloud RAN infrastructure hosting data traffic on Telstra’s 5G commercial network, Telstra’s customers can gain access to the full power of 5G, including low-latency and high-bandwidth performance for improved user experience.

In addition, the RAN virtualisation will allow for new network features and product/service introductions requiring latency, edge computing demands and security requirements. 

Iskra Nikolova, Telstra Executive for Network and Infrastructure, says: “This step in the validation and rollout of this technology is critical to ensure we get the most out of 5G now and in the future. It will allow us to roll out network capacity and new features faster while making our networks more intelligent, automated, flexible, reliable, and secure. This is particularly important when it comes to making sure that areas of high demand, particularly large events and seasonal hotspots can operate at the high standard our customers expect. Our ongoing partnership with Ericsson has once again supported Telstra’s efforts to deliver a world-leading 5G experience for the Australian public.”

Emilio Romeo, Head of Ericsson, Australia and New Zealand, says: “The flexibility provided by Ericsson’s Cloud RAN technology delivers a more open network architecture for Telstra, one that is fully independent of hardware solutions and easily scalable to meet evolving customer demand for optimal service performance now and into the future. As Ericsson’s Cloud RAN infrastructure is rolled out to more sites around the country, Telstra’s 5G network is set to offer even more capacity, reliability and performance to its Australian customers.”

https://www.ericsson.com/en/press-releases/7/2023/telstra-commercial-5g-sites-go-live-with-ericsson-cloud-ran-technology

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KKR invests in Peru’s first open access fiber network

KKR will acquire a majority interest in PangeaCo and the existing fiber optic networks of Telefónica del Perú and Entel Perú to build Perú’s first nationwide open access wholesale fiber optics company. Financial terms were not disclosed, although KKR said it plans to make approximately US$200 million of additional investment to more than double the ultra-fast fiber network from more than 2 million homes passed today to reach 5.2 million homes passed across 86 provinces by the end of 2026.

The deal will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Perú into an independent company called ON*NET Fibra de Perú. KKR will own a 54% interest in ON*NET Fibra de Perú alongside Telefónica Hispanoamérica, which will own 36%, and Entel Perú, which will own 10%.

Significantly, the newly formed network will be open access, allowing usage to all internet service providers for the first time.  Telefónica del Perú and Entel Perú will be anchor tenants.

Through the combination of these networks, KKR will establish ON*NET Fibra de Perú as the new name for the platform which will independently build and operate the nation’s largest fiber optic network with world-class quality standards. 

The entire ON*NET Fibra de Perú fiber optic network will be open to use by all internet service providers, increasing competition in the wholesale market.

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IDC: Worldwide public cloud services topped $500B in 2022

Worldwide revenue for the public cloud services market totaled $545.8 billion in 2022, an increase of 22.9% over 2021, according to IDC’s Worldwide Semiannual Public Cloud Services Tracker.

• Software as a Service – Applications (SaaS – Applications) continued to be the largest source of public cloud services revenue, accounting for more than 45% of the total in 2022. 
• Infrastructure as a Service (IaaS) was the second largest revenue category with 21.2% of the total.
• Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 17.0% and 16.7% of overall revenue respectively. 

"Given the economic challenges of the past year, it's easy to conclude that we are in a period where a focus on constraining new expenditures and optimizing the use of existing cloud assets will dominate CIOs' priorities and shape the fortunes of IT providers for the next several years. It's also a very wrong conclusion. The assessment and use of AI, triggered by generative AI, is starting to dominate the planning and long term investment agendas of businesses and cloud providers will play a significant role in the evaluation and adoption of AI enablement services," said Rick Villars, group vice president, Worldwide Research at IDC.

Some additional highlights from IDC:

• Spending with the leading providers of public cloud services further consolidated in 2022 with the combined revenue of the top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce Inc., Google, and Oracle – capturing more than 41% of the worldwide total and growing 27.3% year over year. 
• With offerings in all four deployment categories, Microsoft remained in the top position in the overall public cloud services market with 16.8% share in 2022, followed by Amazon Web Services with 13.5% share.
• While the overall public cloud services market grew 22.9% year over year in 2022, revenue for foundational cloud services that support digital-first strategies saw revenue growth of 28.8%. 

"Cloud providers are making significant investments in high-performance infrastructure," said Dave McCarthy, research vice president, Cloud and Edge Infrastructure Services. "This serves two purposes. First, it unlocks the next wave of migration for enterprise applications that have previously remained on-premises. Second, it creates the foundation for new AI software that can be quickly deployed at scale. In both cases, these investments are resulting in market growth opportunities."

https://www.idc.com/getdoc.jsp?containerId=prUS51009523

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