RENO, Nev. — New data from Synergy Research Group shows that across four key cloud service and infrastructure market segments, operator and vendor revenues for the first half of 2020 were $187 billion, having grown by 20% from the first half of 2019. The biggest growth was seen in cloud infrastructure services, comprising IaaS, PaaS, and hosted private cloud services. First half revenue from these services grew by 34% from 2019. Enterprise SaaS revenues grew by 21%, while spending on hardware and software for public, private, and hybrid infrastructure grew by 10%. Cloud provider spending on colocation, leasing, and data center construction also grew by 10%. Across the whole cloud ecosystem, companies featured the most prominently were Microsoft, Amazon, Salesforce, Dell, and IBM. Other major players included Cisco, Google, Adobe, Oracle, HPE, Inspur, VMware, Huawei, and SAP. In aggregate, these companies accounted for well over half of all cloud-related revenues.
In the first half of 2020, total spend on hardware and software used to build cloud infrastructure was over $60 billion — somewhat evenly split between public and private clouds. Infrastructure investments by cloud service providers helped them to generate almost $120 billion in revenues from cloud infrastructure services and enterprise SaaS. In addition to these enterprise services, their cloud infrastructure also supports internet services, such as search, social networking, email, e-commerce, gaming, and mobile apps. Those cloud providers need somewhere to house their infrastructure, so their substantial spending on data center leasing, colocation services, and data center construction also continued to grow.