<p>Worldwide revenue for the public cloud services market totaled $669.2 billion in calendar year 2023, an increase of 19.9% compared to 2022, according to new data from the International Data Corporation (<a href="https://www.idc.com/">IDC</a>) <a href="https://www.idc.com/getdoc.jsp?containerId=IDC_P29737">Worldwide Semiannual Public Cloud Services Tracker</a>.</p>
<p>The largest source of public cloud services revenue in 2023 was Software as a Service – Applications (SaaS – Applications), which accounted for nearly 45% of the market total. Infrastructure as a Service (IaaS) was the second largest revenue category with 19.9% of the total while Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 18.4% and 17.0% of overall revenue respectively. PaaS and SaaS – SIS were the categories with the fastest year-over-year revenue growth.</p>
<div class="landscape_table_overflow">
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<td colspan="6"><b>Worldwide Public Cloud Services Revenue and Year-over-Year Growth, Calendar Year 2023</b> (revenues in US$ billions)</td>
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<td><b>Deployment Category</b></td>
<td><b>2023 Revenue</b></td>
<td><b>2023 Market Share</b></td>
<td><b>2022 Revenue</b></td>
<td><b>2022 Market Share</b></td>
<td><b>2023/2022 Growth</b></td>
</tr>
<tr>
<td>IaaS</td>
<td>$133.4</td>
<td>19.9%</td>
<td>$115.5</td>
<td>20.7%</td>
<td>15.6%</td>
</tr>
<tr>
<td>PaaS</td>
<td>$123.3</td>
<td>18.4%</td>
<td>$95.4</td>
<td>17.1%</td>
<td>29.3%</td>
</tr>
<tr>
<td>SaaS – Applications</td>
<td>$298.5</td>
<td>44.6%</td>
<td>$254.4</td>
<td>45.6%</td>
<td>17.4%</td>
</tr>
<tr>
<td>SaaS – System Infrastructure Software</td>
<td>$114.0</td>
<td>17.0%</td>
<td>$93.1</td>
<td>16.7%</td>
<td>22.5%</td>
</tr>
<tr>
<td><b>Total</b></td>
<td><b>$669.2</b></td>
<td><b>100%</b></td>
<td><b>$558.3</b></td>
<td><b>100%</b></td>
<td><b>19.9%</b></td>
</tr>
<tr>
<td colspan="6">Source: IDC Worldwide Semiannual Public Cloud Services Tracker, 2H 2023, May 2024.</td>
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<p>&#8220;In large part due to end-user investment in AI, PaaS revenue growth continues to outpace the overall cloud market,&#8221; said <a href="https://www.idc.com/getdoc.jsp?containerId=PRF005917">Adam Reeves</a>, research director, <a href="https://www.idc.com/getdoc.jsp?containerId=IDC_P29775">PaaS for Developers of Modern and Edge Applications</a>. &#8220;Both market share-leading vendors and smaller providers continue to release PaaS-delivered AI offerings. Vendors are focused on being strategic partners to their customers by delivering highly performant, developer-friendly, trustworthy, and secure offerings that help users deliver intelligent applications more efficiently.&#8221;</p>
<p>The leading providers of public cloud services maintained their positions in 2023 with the combined revenue of the top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce Inc., Google, and Oracle – capturing 40.5% of the worldwide total. With offerings in all four deployment categories, Microsoft remained in the top position in the overall public cloud services market with 16.8% share in 2023, followed by Amazon Web Services with 12.4% share.</p>
<p><img src="https://www.idc.com/getfile.dyn?containerId=prUS52343224&;attachmentId=47517675" alt="" /></p>
<p>IDC forecasts worldwide public cloud services revenue will surpass $800 billion in 2024, an increase of 20.5% over 2023 with a similar increase expected in 2025. While the annual rate of growth will slow slightly over the forecast period, the market is still forecast to deliver a five-year compound annual growth rate (CAGR) of 19.5% with worldwide revenues reaching $1.6 trillion in 2028.</p>
<p>&#8220;The mainstreaming of AI is driving organizations to rethink their infrastructure strategy,&#8221; said <a href="https://www.idc.com/getdoc.jsp?containerId=PRF005347">Dave McCarthy</a>, research vice president, Cloud and Edge Infrastructure Services. &#8220;Public cloud IaaS will be an attractive source for AI-ready infrastructure as cloud service providers are heavily investing in the high-performance compute, storage, and networking services needed for AI workloads. The on-demand and pay-as-you-go tenets of cloud infrastructure facilitate access to the latest AI technology without large upfront investments or supply chain delays.&#8221;</p>

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