Pandemic lifts U.S. cloud infrastructure commit 29% in Q1 2021

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Cloud infrastructure spending grew 29% in Q1 2021 to a new record of $18.6 billion as the pandemic continued to accelerate digital transformation plans.

According to a new report from Canalys, that spending is also becoming bolstered by a recovering economy that is encouraging enterprises to prioritize projects that had been delayed in the course of the pandemic. Over the previous year, the adoption of remote working, distance finding out, streaming, and e-commerce had currently catalyzed spending in this sector as organizations had been forced to adapt to radical modifications in customer behavior.

Looking ahead, Canalys projects that government cloud spending will raise following the Biden administration’s choice to emphasize modernization and safety spending, bolstered by the $1 billion Technology Modernization Fund that was tucked in the bigger financial stimulus strategy not too long ago adopted.

As a outcome, cloud providers are ramping up cloud infrastructure spending to serve these requirements. Amazon Web Services remains the market place leader for cloud services at 37%, followed by Microsoft Azure at 23% and Google at 9%, according to Canalys.

“Customers from all industries need more advanced solutions and heightened security practices from cloud service providers. The scale of rapid workload migration and the complexity of hybrid and multi-cloud environments is accelerating the development of data centers’ geographic reach, capacity and security capabilities,” stated Canalys Research Analyst Blake Murray in a statement. “Building trust between customers and cloud service providers while emphasizing cloud security advantages will be deciding factors in cloud service provider competition in 2021.”

Geographically, the U.S. continues to be the biggest cloud infrastructure market place, representing 44% of worldwide spending. China is a distant second with 15%.


Originally appeared on: TheSpuzz

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