According to new data from the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker, worldwide revenue for the public cloud services market totaled $315.5 billion in the first half of 2023 (1H23), an increase of 19.1% over the same period in 2022.
Software as a Service – Applications (SaaS – Applications) continued to be the largest source of public cloud services revenue, accounting for nearly 45% of the total in 1H23. Infrastructure as a Service (IaaS) was the second largest revenue category with 20.4% of the total while Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 18.0% and 16.9% of overall revenue respectively. PaaS and SaaS – SIS were the categories with the fastest year-over-year revenue growth.
"The fundamentals of cloud technologies and public cloud PaaS providers as strategic partners to enterprises and companies of all sizes are evident as AI pervasiveness strengthens," said Lara Greden, research director, Platform as a Service, IDC. "Companies continue to accelerate movement to and adoption of the cloud for modernization and new, intelligent application initiatives based on all types of data streams. The strong market growth seen in PaaS comes from not just the top few but a large ecosystem of PaaS vendors that are meeting customer needs in the cloud."
The leading providers of public cloud services maintained their positions in 1H23 with the combined revenue of the top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce Inc., Google, and Oracle – capturing 41% of the worldwide total and relatively unchanged year over year. With offerings in all four deployment categories, Microsoft remained in the top position in the overall public cloud services market with 17.1% share in 1H23, followed by Amazon Web Services with 12.6% share.