Google revenue

US hyperscalers set cloud revenue and CAPEX records

INCLINE VILLAGE, Nevada, Feb. 04 2022 (GLOBE NEWSWIRE) — According to a newly released report by 650 Group, U.S. Hyperscaler Cloud market revenue grew 30% year-over-year in 4Q21, while the data center equipment supply chain in Hyperscalers have performed unevenly due to continued shortages of semiconductors and components.

The 650 Group Cloud Report covers colocation, IaaS, SaaS, and search and social media.

4Q21 Highlights:

  • Different approaches to social networks have a significant impact on the performance of Google and Meta (Facebook)
  • Hyperscaler IaaS Revenue Growth Outpaces Search and Social Revenue in 4Q21; The growth was even for the year 2021
  • US Hyperscaler made over $60 million in hourly cloud revenue in 2Q21
  • Apple continues to lag the rest of the hyperscalers in data center investment
  • The use and expertise of the network and the calculation lead each hyperscaler to spend differently to obtain the same level of performance from their equipment
  • CAPEX guidance remains strong for 2022 despite continued supply constraints and trade war events
  • AWS, Azure and GCP remain dominant in IaaS; Oracle and OVH invest to catch up while others fall behind
  • Hyperscalers are poised to accelerate next-generation server and network architectures over the next two years, focused on AI/ML, and a new class of metaverse-focused hardware

Cloud reports include CAPEX studies for the colocation, IaaS, SaaS, search and social media markets, including a unique look at spend specifically for data center equipment. Additionally, going beyond cloud revenue provides unique insight into where and how the largest cloud providers deploy their equipment. Finally, the report shows the trend of increasing CAPEX spending in IaaS as many SaaS vendors choose IaaS over building their own infrastructure.

“4Q21 and 2021 IaaS revenues hit a record high, far surpassing previous records,” said Alan Weckel, founding analyst for 650 Group. “Many cloud providers have made significant and game-changing bets for the business in the second half of 2022 that will change the cloud market and how compute, networking and storage will be deployed in the future. future. As a result, CAPEX and investments are expected to skyrocket as the cloud moves into the metaverse and AI/ML in IaaS begins to take off.”

About Group 650
650 Group is a leading market intelligence research company for the communications, data center and cloud markets. Our team has decades of research experience, worked in the technology industry and is actively involved in standards bodies. The 650 Group focuses on industry-leading market trends and research and prides itself on being the premier market researcher with over 12 research programs focused on cloud trends.

Media Contact:
Greg Cross
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