Global public cloud revenues increased by 22.9% or $545.8 billion in 2022 with Software as a Service – Applications (SaaS – Applications) posting the highest growth. The latest data from the International Data Corp. (IDC) show that SaaS – Applications account for more than 45% of the total public cloud revenue last year.

“IDC research shows that most organizations rank their public cloud provider as their most strategic technology partner, with general agreement among IT leaders and business leaders,” said Lara Greden, research director, Platform as a Service, IDC.

The second largest public cloud revenue generator is Infrastructure as a Service (IaaS) with a share of 21.2% of the total. It is followed by Platform as a Service (PaaS) with 17% and Software as a Service – System Infrastructure Software (SaaS – SIS) delivering 16.7% of overall revenue.

Public cloud revenues grow 29% in 2021 — IDC
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The top public cloud service providers (listed below) capture more than 41% of the worldwide total and grow 27.3% year over year.

1. Microsoft
2. Amazon Web Services
3. Salesforce Inc.
4. Google
5. Oracle 

While the overall public cloud services market grew 22.9% year over year in 2022, revenue for foundational cloud services* that support digital-first strategies saw growth in revenue of 28.8%. 

“This highlights the increasing reliance of enterprises on a cloud innovation platform built around widely deployed compute services, data/AI services, and app framework services to drive innovation,” IDC said. 

IDC expects spending on foundational cloud services (especially IaaS and PaaS elements) to continue growing at a higher rate than the overall cloud market as enterprises leverage the cloud to accelerate their shift toward digital business.