Cloud infrastructure services continued to be in high demand in Q3 2021. Worldwide spending increased 35% to US$49.4 billion, driven by a range of factors, including on-going remote working and learning, and the growing use of industry-specific cloud applications, according to a new report from analyst firm Canalys
The latest Canalys estimates show expenditure has grown US$12.9 billion over Q3 2020 and US$2.4 billion since last quarter.
Cloud services spending is still being affected by the digital transformation efforts required to maintain business continuity during pandemic-related disruptions. In response, the major cloud services providers have emphasized geographic data center expansion to meet rising demand.
According to Canalys, Amazon Web Services (AWS) accounted for 32% of total cloud infrastructure services spend in Q3 2021, making it the leading cloud service provider. It grew 39% on an annual basis. AWS recently announced AWS for Health, which combines industry-specific offerings with cybersecurity and compliance solutions.
Microsoft Azure was the second largest cloud service provider in Q3, with a 21% market share. It grew over 50% for a fifth consecutive quarter. Microsoft continued to focus on industry cloud service customizations and expanded capabilities in financial services and manufacturing.
Google Cloud was the third largest provider and grew 54% to account for 8% of the market. It announced 20 expanded technology partnerships with data and cybersecurity companies to deepen vertical expertise.