AWS, Microsoft, and Google capture 64 percent of the cloud service market

The top three cloud service providers Amazon Web Services (AWS), Microsoft Azure, and Google Cloud collectively grew 22 percent in the first quarter and captured a 64 percent share of customer spending. Amazon Web Services (AWS) was the leading cloud service provider in the first quarter, accounting for 32 percent of total spending after growing 16 percent year-on-year, according to market research firm Canalys. Microsoft Azure remained the second largest cloud service provider with 23 percent market share, while it grew 27 percent year-over-year. Google Cloud grew 30 percent in the March quarter with a 9 percent market share. Worldwide spending on cloud infrastructure services to grow by 19 percent to $66.4 billion in the first quarter of 2023. All cloud hyper scalers were adversely affected, with their growth falling four percentage points from the previous quarter. In response to slowing growth, they announced layoffs and other internal cost cuts in their cloud divisions. Regionally, APAC saw the weakest performance as customer spending eased in Mainland China, affecting many Chinese hyperscalers.