Skip to main content

Cloud Infrastructure Services will Reach $55.8B in 2017

The ongoing shift to cloud computing continues to favor the hyperscale public cloud service providers. That said, there is also a trend to build new local data centers in more countries, where data sovereignty laws require secure storage of data with the nation's border.

The worldwide cloud infrastructure services market grew 49 percent annually, reaching $10.3 billion within Q4 2016, according to the latest market study by Canalys.

Cloud Infrastructure Market Development

AWS continued to dominate with a 33.8 percent global market share, while its three nearest competitors – Microsoft, Google and IBM - together accounted for 30.8 percent of the market.

The four leading service providers were followed by Alibaba and Oracle, which made up 2.4 percent and 1.7 percent of the total.

Canalys forecast the market will reach $55.8 billion in 2017, representing a 46 percent growth from the total value of $38.1 billion in 2016.


Continuing demand is driving the adoption of cloud infrastructure services, which accelerated the cloud data center expansion among key service providers in Q4 2016. AWS launched 11 new availability zones globally in 2016, four of which were established in Canada and the UK in this quarter.

IBM also opened its new data center in the UK, bringing its total cloud data centers to 50 worldwide. Microsoft strengthened its cloud capacity in Western Europe, with new facilities in the UK and Germany.

Google and Oracle set up their first infrastructure in Japan and China respectively, aiming at expanding their footprint in the Asia Pacific region. Alibaba also unveiled the availability of its four new data centers in Australia, Japan, Germany and the United Arab Emirates, highlighting its ambition to drive the presence outside of China.

Outlook for Local Cloud Data Center Growth

"Strict data sovereignty laws and customer demand are pushing cloud service providers to build data centers in key markets, such as Germany, Canada, Japan, the UK, China and the Middle East; where personal data is increasingly required to be stored in facilities that are physically located within the country," said Daniel Liu, research analyst at Canalys.

Expanding data center locations across the world and into key economies has been critical in supporting multi-national customers in their digital transformation initiatives. These services are also providing digital platforms for businesses to access new markets and capitalize on new trade opportunities, such as Alibaba’s Tmall Global.

Popular posts from this blog

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202