According to the latest IDC data on July 8, global revenue for the public cloud services market reached $545.8 billion last year, with an increase of 22.9% over 2021. The top 5 public cloud service providers, Microsoft, Amazon Web Service, Salesforce, Google, and Oracle, captured more than 41% of the total market worldwide and are growing by 27.3% YoY.

With offerings in all four categories, Microsoft remains in the top position in the overall cloud service market with a 16.8% market capture, followed by Amazon Web Service with a 13.5% market share.

Software as a Service (SaaS) continues to be the largest source of public cloud services revenue, accounting for more than 45% of the total.

Infrastructure as a Service (IaaS) is the second largest revenue category, with 21.2% of the total. In comparison, Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 17% and 16.7% of overall revenue, respectively.

Rick Villars, group vice president, Worldwide Research at IDC, said, “The assessment and use of AI, triggered by generative AI, is starting to dominate the planning and long-term investment agendas of businesses, and cloud providers will play a significant role in the evaluation and adoption of AI enablement services,”.

Meanwhile, the revenue for foundational cloud services that support digital-first strategies saw revenue growth of 28.8%.