Data from IDC shows that in the first half of 2023, global public cloud service revenue grew by 19.2%, with Software as a Service (SaaS) accounting for the largest share, but Platform as a Service (PaaS) growing the fastest.
Global semi-annual public cloud service tracking data released by the analytics company shows that public cloud service revenue reached US$315.5 billion (£248.1 billion) in the first half of 2023.
SaaS is divided into two segments: The first focuses on applications, with total revenue of $141.2 billion, growing 15.8% year over year. Infrastructure as a Service (IaaS) revenue in the first half of 2023 was US$64.4 billion, a growth rate of 16.9%, while PaaS revenue was US$56.8 billion, a growth rate of 27.7%.
Microsoft maintains its lead in the ranking of public cloud service providers, with IDC valuing the Redmond giant’s share at 17.1% in the first half of 2023. Amazon Web Services (AWS) holds 12.9% of the market—remember its primary dominance is in the IaaS market—with Salesforce, Google, and Oracle rounding out the top five. IDC noted that the top five vendors accounted for more than two-fifths (41%) of total revenue, a position that was “relatively unchanged” year-over-year.
Lara Greden, research director of IDC Platform as a Service, said the strong growth of the PaaS market comes from “a large ecosystem of vendors that meet customer needs in the cloud.”
“As artificial intelligence penetration increases, the foundation for cloud technology and public cloud PaaS providers to serve as strategic partners for enterprises and companies of all sizes is clear,” Greden said. “Companies continue to accelerate their migration and adoption to the cloud. , to enable modernization and new smart application initiatives based on all types of data flows.”
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