INCLINE VILLAGE, Nev., Feb. 07, 2023 (GLOBE NEWSWIRE) -- According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud IaaS market revenue will grow nearly 30% Y/Y in 2022 before decelerating in 2023. Memory price declines and a shift to AI/ML workloads will materially change market shares and vendor positioning in the supply chain during the forecast period.
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 spending in the Cloud.
2023 Forecast Highlights:
- CAPEX reduction in traditional compute and storage spend
- A robust market for higher-speed networking
- CAPEX increases in AI/ML and HPC-based projects
- Significant improvements in supply chain lead times
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 2027. Finally, the report shows the trend towards more CAPEX spending in IaaS as many SaaS providers choose IaaS instead of building their own infrastructure.
“There will be significant changes to Cloud CAPEX throughout 2023. The rapid and considerable news around tech layoffs gives us meaningful insight into the changes as we head into earnings season for the Hyperscalers,” said Alan Weckel, founding analyst for 650 Group. “Reduced employee counts, significant memory pricings declines, and semiconductor lead times falling rapidly are creating the perfect storm for reducing spending on traditional projects in 2023 and shifting focus towards AI/ML builds.”
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. Learn more at http:www.650Group.com
Media Contact:
Greg Cross
greg@650group.com
