Spending on cloud infrastructure services accelerates in 2Q22

APAC (excluding China) spent US$8.7 billion.

Digital transformation has increased the demand for cloud services in the Asia Pacific region. Excluding China, the total amount spent on these services represents 14% of global spending. Drythanks to governments’ digitization efforts and companies’ desire to be future-ready to ensure business continuity; The cloud market for the region is said to be increasing rapidly.

Cloud partners play an increasingly important role in cloud adoption as they help remove barriers and lower the cost of entering new markets. Amazon Web Services (AWS) and Microsoft Azure are the prominent market leaders. AWS accounted for 32% of the market in 2Q12 because its indirect business is small compared to its direct business. Microsoft Azure, on the other hand, had a 26% market share and plans to continue investing in the partner ecosystem to maintain its momentum with its new cloud partner program. Many other major cloud service providers in the Asia Pacific region are investing in channel growth and recruitment. Google Cloud accounts for 9% as it expands its distribution reach, signing a partnership with Ingram Micro in Southeast Asia this quarter to enter SMB channels.

The remaining 33% of the market was occupied by other cloud providers such as Alibaba Cloud, Huawei Cloud and Tencent Cloud.

Canalys Research analyst Yi Zhang said: “Microsoft Azure has a mix of broad-based distributors and specialists, giving it an edge over its competitors in the channel. A mature channel strategy has enabled Microsoft to build trusted relationships between partners and customers. Working with distributors to access small and medium customers, he successfully won the opinion of the small and medium enterprise market. But both AWS and Google Cloud are developing broader and deeper channel relationships in the region to support their own SMB growth.”

Cloud infrastructure services can be defined as services that provide infrastructure and platform; either on dedicated hosted private infrastructure or shared public infrastructure.