Cloud investments near $40 billion in Q4 2020
by Paul Davenport Paul Davenport on

While Microsoft has succeeded in dominating the burgeoning enterprise cloud software market over the past year, AWS continued to reign supreme when it comes to total cloud investments during Q4 2020, with revenues growing 28 percent year-over-year to $12.74 billion.

Despite this growth, AWS’s total share of the cloud market slipped slightly from Q4 2019 from 32.4 percent to 31 percent in Q4 2020, while Microsoft Azure and Google Cloud enjoyed a 20 percent and 7 percent share of the total market, respectively, in Q4 2020. In total, AWS, Microsoft Azure and Google Cloud combined earned 58 percent of the entire revenue in the industry in the final months of last year, while the entire market was valued at $39.9 billion.

This marks a $10 billion increase in total cloud revenues year-over-year.

“The rate of digitalization, led by cloud, is gathering pace,” said Canalys research analyst, Blake Murray. “Large projects that were postponed earlier in the year are being re-prioritized, led by application modernization, SAP migrations, and workplace transformation. Healthcare, financial services, and pharmaceuticals are among the industries leading the way, but even those under most pressure are diverting investments to cloud, opening up new revenue streams and diversifying business models.”

Cloud adoption on rapid positive trajectory

This growth in cloud investments across industries is forecast by Canalys to stay rampant for at least the next five years as enterprises optimize and transform their networks for models that support greater scalability and a work-from-anywhere ethos.

And while AWS still leads the market in total investment, enterprise cloud solutions have taken advantage of pandemic-induced remote work proliferation to enhance their cloud offerings while deploying to a record number of new users.

Microsoft in particular has leveraged the need for increased enterprise collaboration to accelerate deployment of Teams at a breakneck pace beginning in Spring 2020, with more than 90 percent of large enterprises now leveraging Teams licenses.

Further integration with non-Microsoft enterprise cloud solutions is an additional trend that Teams was able to benefit from over the past several months, as SAP recently announced an extension of their partnership with Azure (which hosts SAP’s financial systems) to integrate Teams within S/4 HANA. This comes on the heels of Salesforce and Slack’s recent blockbuster announcement to combine forces to integrate UCaaS capabilities into the former’s popular enterprise software, which was among the biggest cloud headlines of Q4 2020.

When it comes to leveraging Microsoft Teams in particular—whether it’s being deployed as part of a larger enterprise suite of tools or one-off to connect remote workers—enterprise IT teams need greater visibility into how this platform is performing continuously. AppNeta is particularly adept at providing this end-user perspective into Microsoft Teams performance, allowing network IT to gain an outside-in look at the network paths Teams traffic travels from individual remote user locations to the nearest Teams PoP (ie. Azure Region).


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Filed Under: Industry Insights

Tags: collaboration , Microsoft Teams , Microsoft , ucaas , SaaS , network architecture , enterprise network , enterprise cloud , cloud migration , cloud computing , Google Cloud , Azure Cloud , AWS cloud , Azure , AWS , network transformation , cloud transformation , cloud adoption