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IaaS Market Surges to New Heights, Fueled by Generative AI and Cloud Innovation
The global demand for infrastructure as a service (IaaS) shows no signs of slowing down, as the latest data from Gartner reveals. Despite the pandemic and the predictions of a cloud slowdown, IaaS revenue grew by almost 30% in 2022, reaching a record-breaking $120.3 billion.
The public cloud market remains dominated by five major players: Amazon Web Services (AWS), Microsoft Azure, Alibaba Cloud, Google Cloud, and Huawei Cloud. AWS maintained its lead with a 40% market share, followed by Azure with 21.5%, Alibaba with 10.8%, Google with 7.7%, and Huawei with 4.6%.
According to Gartner, the key driver of IaaS growth is the adoption of generative AI, a technology that can create new content, designs, code, and solutions based on data and parameters. Generative AI is transforming various industries and sectors, from entertainment and education to health care and manufacturing.
“Generative AI will continue to drive the cloud market forward, as it creates new markets and opportunities for cloud hyper scalers related to sovereignty, ethics, privacy, and sustainability,” said Sid Nag, vice president analyst at Gartner.
Another factor that boosts IaaS demand is the innovation and differentiation that the cloud enables for organizations. Cloud is no longer just a technology disruptor, but a business disruptor, Nag said. As more applications are moved to the cloud or modernized on the cloud, IaaS also supports the growth of software as a service (SaaS) and platform as a service (PaaS).
Gartner expects the IaaS market to continue growing in the next few years, with an acceleration in 2024.
“There is still room for plenty of additional future growth,” Nag said.
