Despite Decommits in the Supply Chain, US Hyperscalers Maintain 2022 CAPEX Guidance
Incline Village, NV. May 10, 2022 — According to a newly released report issued by 650 Group, US Hyperscaler Cloud market revenue grew 23% Y/Y in 1Q’22 while the supply chain for data center equipment into hyperscalers performed unevenly due to continued semiconductor and component shortages.
650 Group’s US Hyperscaler Cloud Report covers IaaS, SaaS, and Search & Social and publishes shortly after Amazon, Apple, Google, Meta (Facebook), and Microsoft report earnings. It is focused on the Hyperscalers, which account for approximately 70% of revenue and spend in the Cloud.
- Despite decommits in the supply chain, US Hyperscalers kept their 2022 CAPEX guidance
- US Hyperscalers made $1M in Cloud revenue every minute during 1Q’22
- Apple continues to lag the rest of the Hyperscalers in data center investment
- Network and compute utilization and expertise cause each hyperscaler to spend differently to get the same level of output from their equipment
- 400 Gbps and 800 Gbps ramped robustly during 1Q’22
- Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years focused on AI/ML, and a new class of metaverse focused hardware
“US Hyperscalers continue to invest robustly in their data center buildouts despite uneven worldwide growth and supply constraints,” said Alan Weckel, founding analyst for 650 Group. “Supply constraints worsened for several components as semiconductor capacity continues to lag Hyperscaler demand. Despite the difficulties in the supply chain, Hyperscalers continue to push the envelope in process geometry and next-generation technologies. As a result, CAPEX and investment are set to soar over the next several years as the Cloud moves towards the metaverse and AI/ML in IaaS start to take off.”
The US Hyperscaler Cloud reports include CAPEX studies for the IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment. In addition, the report looks at projected revenue and CAPEX through 2026. Finally, the report shows the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building their own infrastructure. To learn more, visit http://650Group.com
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. 650 Group focuses on leading-edge market trends and research and prides itself on first to market research with over 12 research programs focused on Cloud trends. For more information, visit: http://650Group.com