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Canalys: Cloud service spend up 34 per cent in Q1 due to lockdown

Paul Lipscombe
May 1, 2020

The lockdown has caused cloud service providers to respond to growing surge in consumption 

Cloud infrastructure spending has increased by 34 per cent in the first quarter due to a rise in remote working caused by the coronavirus lockdown.

That is according to analyst firm Canalys, which has revealed a surge in demand for collaboration tools, ecommerce and consumer cloud services meant spending on cloud services reached a new record.

However these figures were offset by a slowdown in large complex enterprise migrations and other cloud projects being halted due to the lockdown.

For the first quarter, AWS maintained top spot for market share with 32 per cent of the overall market as sales grew 33 per cent.

Microsoft’s Azure grew sales by 59 per cent to grow its overall share to 17 per cent, with Google Cloud and Alibaba Cloud joint-third with six per cent apiece.

Canalys chief analyst Alastair Edwards said: “This is uncharted territory for cloud service providers, giving a boost to consumption but creating new and often challenging customer dynamics.

“Cloud has become an essential tool to support business continuity in these difficult times. Many organisations have turned to the public cloud for its burst capabilities to meet a sudden spike in use. Platforms such as Zoom would not have been able to operate without the flexible infrastructure provided by the major cloud providers.”

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