2022 Build-Outs to Set Records as Cloud Looks to Metaverse and AI for Growth
Incline Village, NV. February 4, 2022 — According to a newly released report issued by 650 Group, US Hyperscaler Cloud market revenue grew 30% Y/Y in 4Q21 while the supply chain for Data Center Equipment into Hyperscalers performed unevenly due to continued semiconductor and component shortages.
650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.
- Different approaches to Social significantly impact Google and Meta (Facebook) performance
- Hyperscaler IaaS revenue growth outpaces Search and Social Revenue in 4Q21; Growth was even for full-year 2021
- US Hyperscaler made over $60M in Cloud revenue every hour during 2Q21
- 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
- CAPEX guidance remains robust for 2022 despite lingering supply constraints and trade war events
- AWS, Azure, and GCP stay dominant in IaaS; Oracle and OVH invest in catching up while others fall behind
- 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
The Cloud reports include CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment. In addition, going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment. 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.
“4Q21 and 2021 IaaS revenue hit a record, far exceeding previous records,” said Alan Weckel, founding analyst for 650 Group. “Many Cloud providers made significant and company changing bets during the second half of 2022, which will change the Cloud market and the way compute, networking, and storage get deployed in the future. As a result, CAPEX and investment are set to soar as the Cloud moves towards the metaverse and AI/ML in IaaS start to take off.”
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.