Canalys notes that Q1 2020 was the first time spending on cloud exceeded $40 billion and growth did accelerate, albeit at a lower rate than in 2018. Additionally, total spend was nearly US$11 billion higher than a year ago and nearly US$2 billion more than in Q4 2020.
Meanwhile, Google Cloud reported this week that it raked in $4.047 billion in sales in Q1 2021, growing revenues 46% year on year. Still, it posted an operating loss of $974 million, down from a loss of $1.73 billion in the same quarter last year.
Canalys notes Google Cloud benefited from Google cross-selling Google One consumer storage as well as its focus on industry-specific solutions, machine learning, analytics and data management.
According to Canalys, the growth isn't over either.
"Though 2020 saw large-scale cloud infrastructure spending, most enterprise workloads have not yet transitioned to the cloud," said Canalys research analyst, Blake Murray.
"Migration and cloud spend will continue as customer confidence rises during 2021. Large projects that were postponed last year will resurface, while new use cases will expand the addressable market."
Canalys chief analyst, Matthew Ball, noted cloud giants are facing new competition from traditional hardware providers like HPE, Dell, and Lenovo.
"It is not just a contest between the cloud service providers, but also a race with the on-premises infrastructure vendors, such as Dell Technologies, HPE and Lenovo, which have established competitive as-a-service offerings," said Ball.