The cloud is the big winner at Covid-19

In Q2 2020, cloud spending is up $3.5 billion compared to the previous period. Unprecedented.

The trend continues. Coronavirus has a positive impact on the cloud. In the second quarter of 2020, the cloud market rises to $34.6 billion, up 31.4% year-over-year. Compared to the first three months of the year, there is a growth of 11%, representing an increase in spending of $ 3.5 billion. A record according to the American Canalys Research which published these figures. Remote work, e-learning, e-commerce, video streaming… The cloud has been running at full speed to keep what’s left of the economy on track. The slowdown in major migration projects to the cloud following the confinement and the deteriorating economic outlook will not have prevented this groundswell.

Le cloud, grand gagnant du Covid-19

Amazon Web Services (AWS) remains the market leader over the period. But its market share is shrinking. From 32% in the first quarter of 2020, it dropped to 31% in the second quarter. Also according to Canalys, the market share of Microsoft’s Azure cloud has fallen from 17% to 20% over the same period.

In its latest quarterly note on the infrastructure cloud market, Synergy Research shows a slightly higher market share for Amazon (33%) and, conversely, lower for Microsoft (18%). As for Google Cloud, it estimates it at 9%, compared to 6% for Canalys.

Le cloud, grand gagnant du Covid-19

“The cloud will also prove its effectiveness in the phase of gradual return of the economy to normal. In an epidemic context which continues, it allows the rapid deployment of new systems of reservation and remote ordering, and to develop contactless services. It can also be used to secure workspaces by federating occupancy and attendance data,” says Matthew Ball, chief analyst at Canalys Research.

For the rest, the migration of existing workloads to the cloud will not stop “but security, migration and development tools, multi- and hybrid-IT support, as well as the search for more predictable costs, are now priorities as organisations seek to maximise deployment speed, minimise disruption and meet tighter IT budgets,” says Blake Murray, analyst at Canalys.

In the face of these new constraints, competition between the market leaders should logically increase. “Competition from third-party providers will also intensify,” says Murray. In the end, customers should be much more sensitive to the differentiation points of each provider and obviously to prices.

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