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Despite worsening economic conditions globally, spending on Cloud infrastructure services, according to a new report, has surged some 34 percent in the first quarter of 2022, resulting in $55.9 billion being expended to back digital transformation strategies and various organizational optimization initiatives.

When compared to the previous quarter, according to information from Canalys, cloud services spending increased by more than $2 billion and, over the first quarter of 2021, by $14 billion, significantly impacting the gains made by the top three cloud service providers, who account for 62 percent of global customer spending for cloud-related services. AWS continues to lead the pack, with their first quarter performance this year, according to Canalys, accounting for 33 percent of total customer spending. It was also reported that Amazon will continue to expand globally, evidenced by the launch of 16 new local zones in the US, with plans for another 32 to be rolled out across 26 countries.

Only trailing Amazon during the same period was Microsoft Azure, securing an impressive 21 percent of the market, doubling the number of their contracts and in the process, earning more than $100 million.

Google Cloud, despite being the fastest growing among the trio with a 54 percent growth increase over last year, rounds out the top three with just eight percent market share. Their growth is expected to continue as the company intensifies its focus on the areas of AI, analytics, cybersecurity and digital sovereignty. 

Blake Murray, an analyst of Canalys Research, indicated that as modern alterations to businesses continue to test digital resiliency, cloud services will grow in demand “to face the market challenges of today and tomorrow. To be effective in resiliency planning, customers are turning to channel partners with the technical and consulting skills to help them effectively embrace hyperscaler cloud services.”

Additionally, with geopolitical turmoil leading to increased instances of cyber-attacks over the last few years, whether deliberately or otherwise, as well as supply chain issues having global consequences, the need for cloud-backed transformation strategies has never been greater. That’s why more SMBs have taken steps to invest in Cloud infrastructure as a way to bolster their service offerings while protecting themselves against hardware shortages and price hikes by locking into large scale, multi-year cloud contracts.

According to Zi Yang, another Canalys Researcher, “As the use cases for cloud infrastructure services expand so does the potential complexity, and we see that hybrid and multi-cloud deployments are commonplace in the market.” He concluded: “The hyperscalers are investing in rapid channel development and partners are responding as the opportunities grow.”

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