Public Cloud Services Revenues Surpass $500 Billion in 2022: IDC

By Jaime Hampton

July 12, 2023

Worldwide revenue for the public cloud services market totaled $545.8 billion in 2022, an increase of 22.9% over 2021, according to new data from the IDC Worldwide Semiannual Public Cloud Services Tracker.

SaaS applications were the largest source of public cloud services revenue, accounting for over 45% of the total in 2022. Infrastructure as a service was the second largest revenue category at 21.2% of the total revenue, with Platform as a service and SaaS System Infrastructure software at 17.0% and 16.7% respectively.

IDC data also showed that the top five public cloud providers – Microsoft, Amazon Web Services, Salesforce Inc., Google, and Oracle – accounted for more than 41% of the worldwide total revenue for a 27.3% year-over-year growth. Microsoft had the largest market share of the public cloud services market with 16.8%, followed by Amazon Web Services with 13.5%.

“Given the economic challenges of the past year, it’s easy to conclude that we are in a period where a focus on constraining new expenditures and optimizing the use of existing cloud assets will dominate CIOs’ priorities and shape the fortunes of IT providers for the next several years. It’s also a very wrong conclusion,” said Rick Villars, group vice president, Worldwide Research at IDC. “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.”

Generative AI is Driving Investment in the Cloud

Though some budgets may be tightening due to lingering economic uncertainty, generative AI is driving long-term investment strategies for enterprises and cloud providers.

“Cloud providers are making significant investments in high-performance infrastructure,” said Dave McCarthy, research vice president, Cloud and Edge Infrastructure Services, IDC. “This serves two purposes. First, it unlocks the next wave of migration for enterprise applications that have previously remained on-premises. Second, it creates the foundation for new AI software that can be quickly deployed at scale. In both cases, these investments are resulting in market growth opportunities.”

Venture capital firm Andreessen Horowitz says that Generative AI warrants significant cloud investments due to its resource-intensive nature.

“Nearly everything in generative AI passes through a cloud-hosted GPU (or TPU) at some point. Whether for model providers/research labs running training workloads, hosting companies running inference/fine-tuning, or application companies doing some combination of both – FLOPS are the lifeblood of generative AI,” the company wrote. “For the first time in a very long time, progress on the most disruptive computing technology is massively compute bound.”

Andreessen Horowitz says that access to compute resources at the lowest total cost has become a determining factor for the success of AI companies. The venture capital firm expects the vast majority of startups to use cloud computing for generative AI, as it offers less up-front cost and more scalability in many cases.

Cloud Providers Seek to Keep Up with AI Demand

A recent Wall Street Journal article noted that traditional cloud infrastructure was not designed to support large-scale AI and cloud providers are rushing to catch up with the demand.

“There’s a pretty big imbalance between demand and supply at the moment,” said Chetan Kapoor, director of product management at Amazon Web Services’ Elastic Compute Cloud division in the WSJ article.

Only a small portion of cloud services are optimized for AI. A majority of the cloud consists of servers leveraging general-purpose CPUs, whereas GPU clusters better served for running AI workloads make up a minority of the infrastructure.

Kapoor told WSJ that AWS plans to deploy multiple AI-optimized server clusters over the next 12 months. The article also noted that Microsoft Azure and Google Cloud are also working to increase their AI infrastructure.

Hewlett Packard Enterprise is also entering the AI cloud market. The company recently announced it is introducing HPE GreenLake for Large Language Models, an on-demand, multi-tenant supercomputing cloud service that will enable enterprises to privately train, tune and deploy large-scale AI.

“Unlike general-purpose cloud offerings that run multiple workloads in parallel, HPE GreenLake for LLMs runs on an AI-native architecture uniquely designed to run a single large-scale AI training and simulation workload, and at full computing capacity,” the company said in a release. “The offering will support AI and HPC jobs on hundreds or thousands of CPUs or GPUs at once. This capability is significantly more effective, reliable, and efficient to train AI and create more accurate models, allowing enterprises to speed up their journey from POC to production to solve problems faster.”

HPE President and CEO Antonio Neri commented that we have reached a generational market shift in AI that will be as transformational as previous tech breakthroughs like the web, mobile, and cloud.

“HPE is making AI, once the domain of well-funded government labs and the global cloud giants, accessible to all by delivering a range of AI applications, starting with large language models, that run on HPE’s proven, sustainable supercomputers. Now, organizations can embrace AI to drive innovation, disrupt markets, and achieve breakthroughs with an on-demand cloud service that trains, tunes, and deploys models, at scale and responsibly,” he said.

This story originally appeared on sister site Enterprise AI.

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industry updates delivered to you every week!

What We Know about Alice Recoque, Europe’s Second Exascale System

June 24, 2024

Europe officially announced its second exascale system, Alice Recoque, and you can expect to see that name on the Top500 supercomputer list in a few years. Alice Recoque is the new name for a supercomputer with the opera Read more…

Spelunking the HPC and AI GPU Software Stacks

June 21, 2024

As AI continues to reach into every domain of life, the question remains as to what kind of software these tools will run on. The choice in software stacks – or collections of software components that work together to Read more…

HPE and NVIDIA Join Forces and Plan Conquest of Enterprise AI Frontier

June 20, 2024

The HPE Discover 2024 conference is currently in full swing, and the keynote address from Hewlett-Packard Enterprise (HPE) CEO Antonio Neri on Tuesday, June 18, was an unforgettable event. Other than being the first busi Read more…

Slide Shows Samsung May be Developing a RISC-V CPU for In-memory AI Chip

June 19, 2024

Samsung may have unintentionally revealed its intent to develop a RISC-V CPU, which a presentation slide showed may be used in an AI chip. The company plans to release an AI accelerator with heavy in-memory processing, b Read more…

ASC24 Student Cluster Competition: Who Won and Why?

June 18, 2024

As is our tradition, we’re going to take a detailed look back at the recently concluded the ASC24 Student Cluster Competition (Asia Supercomputer Community) to see not only who won the various awards, but to figure out Read more…

Qubits 2024: D-Wave’s Steady March to Quantum Success

June 18, 2024

In his opening keynote at D-Wave’s annual Qubits 2024 user meeting, being held in Boston, yesterday and today, CEO Alan Baratz again made the compelling pitch that D-Wave’s brand of analog quantum computing (quantum Read more…

Spelunking the HPC and AI GPU Software Stacks

June 21, 2024

As AI continues to reach into every domain of life, the question remains as to what kind of software these tools will run on. The choice in software stacks – Read more…

HPE and NVIDIA Join Forces and Plan Conquest of Enterprise AI Frontier

June 20, 2024

The HPE Discover 2024 conference is currently in full swing, and the keynote address from Hewlett-Packard Enterprise (HPE) CEO Antonio Neri on Tuesday, June 18, Read more…

Slide Shows Samsung May be Developing a RISC-V CPU for In-memory AI Chip

June 19, 2024

Samsung may have unintentionally revealed its intent to develop a RISC-V CPU, which a presentation slide showed may be used in an AI chip. The company plans to Read more…

Qubits 2024: D-Wave’s Steady March to Quantum Success

June 18, 2024

In his opening keynote at D-Wave’s annual Qubits 2024 user meeting, being held in Boston, yesterday and today, CEO Alan Baratz again made the compelling pitch Read more…

Shutterstock_666139696

Argonne’s Rick Stevens on Energy, AI, and a New Kind of Science

June 17, 2024

The world is currently experiencing two of the largest societal upheavals since the beginning of the Industrial Revolution. One is the rapid improvement and imp Read more…

Under The Wire: Nearly HPC News (June 13, 2024)

June 13, 2024

As managing editor of the major global HPC news source, the term "news fire hose" is often mentioned. The analogy is quite correct. In any given week, there are Read more…

Labs Keep Supercomputers Alive for Ten Years as Vendors Pull Support Early

June 12, 2024

Laboratories are running supercomputers for much longer, beyond the typical lifespan, as vendors prematurely deprecate the hardware and stop providing support. Read more…

MLPerf Training 4.0 – Nvidia Still King; Power and LLM Fine Tuning Added

June 12, 2024

There are really two stories packaged in the most recent MLPerf  Training 4.0 results, released today. The first, of course, is the results. Nvidia (currently Read more…

Atos Outlines Plans to Get Acquired, and a Path Forward

May 21, 2024

Atos – via its subsidiary Eviden – is the second major supercomputer maker outside of HPE, while others have largely dropped out. The lack of integrators and Atos' financial turmoil have the HPC market worried. If Atos goes under, HPE will be the only major option for building large-scale systems. Read more…

Comparing NVIDIA A100 and NVIDIA L40S: Which GPU is Ideal for AI and Graphics-Intensive Workloads?

October 30, 2023

With long lead times for the NVIDIA H100 and A100 GPUs, many organizations are looking at the new NVIDIA L40S GPU, which it’s a new GPU optimized for AI and g Read more…

Everyone Except Nvidia Forms Ultra Accelerator Link (UALink) Consortium

May 30, 2024

Consider the GPU. An island of SIMD greatness that makes light work of matrix math. Originally designed to rapidly paint dots on a computer monitor, it was then Read more…

Nvidia H100: Are 550,000 GPUs Enough for This Year?

August 17, 2023

The GPU Squeeze continues to place a premium on Nvidia H100 GPUs. In a recent Financial Times article, Nvidia reports that it expects to ship 550,000 of its lat Read more…

Nvidia’s New Blackwell GPU Can Train AI Models with Trillions of Parameters

March 18, 2024

Nvidia's latest and fastest GPU, codenamed Blackwell, is here and will underpin the company's AI plans this year. The chip offers performance improvements from Read more…

Choosing the Right GPU for LLM Inference and Training

December 11, 2023

Accelerating the training and inference processes of deep learning models is crucial for unleashing their true potential and NVIDIA GPUs have emerged as a game- Read more…

Synopsys Eats Ansys: Does HPC Get Indigestion?

February 8, 2024

Recently, it was announced that Synopsys is buying HPC tool developer Ansys. Started in Pittsburgh, Pa., in 1970 as Swanson Analysis Systems, Inc. (SASI) by John Swanson (and eventually renamed), Ansys serves the CAE (Computer Aided Engineering)/multiphysics engineering simulation market. Read more…

Some Reasons Why Aurora Didn’t Take First Place in the Top500 List

May 15, 2024

The makers of the Aurora supercomputer, which is housed at the Argonne National Laboratory, gave some reasons why the system didn't make the top spot on the Top Read more…

Leading Solution Providers

Contributors

Nvidia Shipped 3.76 Million Data-center GPUs in 2023, According to Study

June 10, 2024

Nvidia had an explosive 2023 in data-center GPU shipments, which totaled roughly 3.76 million units, according to a study conducted by semiconductor analyst fir Read more…

Google Announces Sixth-generation AI Chip, a TPU Called Trillium

May 17, 2024

On Tuesday May 14th, Google announced its sixth-generation TPU (tensor processing unit) called Trillium.  The chip, essentially a TPU v6, is the company's l Read more…

Intel’s Next-gen Falcon Shores Coming Out in Late 2025 

April 30, 2024

It's a long wait for customers hanging on for Intel's next-generation GPU, Falcon Shores, which will be released in late 2025.  "Then we have a rich, a very Read more…

AMD MI3000A

How AMD May Get Across the CUDA Moat

October 5, 2023

When discussing GenAI, the term "GPU" almost always enters the conversation and the topic often moves toward performance and access. Interestingly, the word "GPU" is assumed to mean "Nvidia" products. (As an aside, the popular Nvidia hardware used in GenAI are not technically... Read more…

The NASA Black Hole Plunge

May 7, 2024

We have all thought about it. No one has done it, but now, thanks to HPC, we see what it looks like. Hold on to your feet because NASA has released videos of wh Read more…

AMD Clears Up Messy GPU Roadmap, Upgrades Chips Annually

June 3, 2024

In the world of AI, there's a desperate search for an alternative to Nvidia's GPUs, and AMD is stepping up to the plate. AMD detailed its updated GPU roadmap, w Read more…

Q&A with Nvidia’s Chief of DGX Systems on the DGX-GB200 Rack-scale System

March 27, 2024

Pictures of Nvidia's new flagship mega-server, the DGX GB200, on the GTC show floor got favorable reactions on social media for the sheer amount of computing po Read more…

How the Chip Industry is Helping a Battery Company

May 8, 2024

Chip companies, once seen as engineering pure plays, are now at the center of geopolitical intrigue. Chip manufacturing firms, especially TSMC and Intel, have b Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire