Global cloud revenue grew 22.9% year-on-year in 2022 to a new high of nearly $550 billion, new resarch has found.
Most notable was the Software-as-a-Service (SaaS) Applications sector, which accounting for nearly half (45.1%) of global cloud’s total revenue last year, representing more than double that of Infrastructure-as-a-Service (IaaS) in second place at 21.2%.
The figures come from the latest IDC Tracker figures, which pulls figures in from 850 cloud services companies across 49 countries globally.
The cloud continues to grow
Of the $545.8 billion in cloud revenue measured in 2022, IDC claims an estimated $246.3 billion came from SaaS Applications. Despite together accounting for two-thirds (66.3%) of the market, SaaS Applications and IaaS both saw a slight drop in overall market share, making room particularly for growth in Platform as a Service (PaaS) revenue.
This research, along with countless other studies, continues to place AWS ahead of its competition in terms of market share. The company accounts for 40.5% of the foundational cloud services sector. Microsoft measures just over half as much success, at 21.5%, while Google Cloud trails far behind with just 6.1%.
Group VP for Worldwide Research at IDC, Rick Villars, said that it would be easy to conclude that companies are really scrutinizing expenditures as they look to streamline operations, but that is in fact wrong.
Rather, businesses are continuing to invest in cloud services, thanks in part to significant interest in artificial intelligence.
Looking forward, Frank Della Rosa, Research VP for SaaS, Business Platforms, and Industry Cloud at IDC said:
“The next generation of SaaS applications will leverage advances in AI to deliver unprecedented performance improvements in personalization and customer experience, and operational efficiency while redefining functional markets across industries.”
Rosa indicated that the SaaS Applications area shows no sign of making room for other sectors as it continues to draw in significant revenue.
This post originally appeared on TechToday.