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In the second quarter of 2022, the demand for cloud infrastructure services remained high. Affected by the market demand for data analysis and machine learning, data center integration, application migration, cloud native development and service delivery, global cloud expenditure increased by 33% year-on-year to $62.3 billion. Due to the increasing use of industry-specific cloud applications, there are more and more horizontal use cases in the process of it transformation. The latest data from canalys shows that the global cloud expenditure is more than $6 billion higher than the previous quarter and $15billion higher than the second quarter of 2021. In the second quarter of 2022, the top three global cloud expenditures were covered by Amazon cloud technology, Microsoft azure and Google cloud. These three giants accounted for 63% of the global cloud expenditure in the second quarter of 2022, with a total increase of 42%.

At present, the global economy is in a situation of high inflation, rising interest rates and economic recession, and the market demand for cloud services is still strong. In the second quarter of 2022, Amazon cloud technology accounted for 31% of the total expenditure on cloud infrastructure services, with an annual growth rate of 39%, leading the market and ranking first. Azure cloud service providers have 24% market share in this quarter, with an annual growth rate of 40%, ranking second. Google cloud increased by 45% and its market share accounted for 8%.

Although Amazon cloud technology takes the lead in the market, Microsoft azure is unwilling to be outdone and closely follows, constantly narrowing the gap between the two, resulting in more intense competition between the two sides. Microsoft pointed out that the number of transactions of its large-scale long-term contracts (more than $100million and more than $1billion) hit a record high in this quarter. Thanks to this, Microsoft has achieved growth. In addition, benefiting from the diversified market ecology, extensive product portfolio and software partnership, Microsoft has been able to continuously narrow the gap with Amazon cloud technology.

Alex Smith, vice president of canalys, said: "Cloud technology is still a segment of the technology industry with strong growth. Although suppliers of different sizes have many potential opportunities, the competition between Amazon cloud technology and Microsoft is still the most intense. With the cost pressure brought about by inflation and rising interest rates, in order to meet market demand, all parties must continue to invest in cloud infrastructure. The competition will be very fierce, which will also pose huge challenges to their CFOs Challenges. "

However, both Amazon cloud technology and Microsoft continue to launch cloud infrastructure. Amazon cloud technology plans to launch 24 availability zones in eight regions, while Microsoft plans to launch 10 new availability zones next year. Both sides continue to increase investment in other regions (except the United States) to catch up with global demand and ensure that solutions with low latency and high data sovereignty can be provided.

Alex Smith also pointed out that, "Microsoft announced that it will extend the depreciation life of its servers and network equipment from 4 years to 6 years due to the improvement of its technology efficiency. This will help to improve the future operating revenue and also show that Microsoft will make full use of its assets, which in turn will help to maintain the stability of the investment cycle as the scale of its infrastructure continues to expand. However, the problem is that some services will inevitably need to run on traditional equipment Whether this will have a negative impact on the customer's use experience in the future. "

In addition to infrastructure investment, software capabilities and partnerships are essential to meet customers' cloud needs, especially in considering the computing needs of highly specialized services across different vertical areas.

Yi Zhang, research analyst at canalys, said: "Most companies have completed the initial steps of transferring some workloads to the cloud and are considering migrating key services. Top cloud vendors are accelerating their cooperation with various software companies and pursuing their differentiated value propositions. Recently, Microsoft pointed out that it would expand its services and migrate more Oracle workloads to azure, which is connected to databases running on Oracle cloud."