Global cloud services spending was up 16% year-on-year in Q3 2023, but the growth rate "stabilised", according to analyst house Canalys.
Spending on cloud infrastructure services reached $73.5 billion, but growth remained consistent with the previous quarter, "showing we are entering a stable phase", the analyst said.
The impact of enterprise IT spending cuts on the cloud services market is "slowly easing", it added.
The top three cloud providers – AWS, Microsoft Azure and Google Cloud – jointly grew by 20%, outpacing the overall market and accounting for 65% of total spending.
AWS mirrored its performance in the previous quarter, while Microsoft saw an uptick in its growth rate. Google Cloud, however, saw a drop in its rate in Q3 2023.
"Apart from capitalising on new business opportunities arising from GenAI, channel partners can incorporate GenAI internally to boost productivity,” said Yi Zhang, analyst at Canalys. “To succeed in this rapidly evolving landscape, channel partners must stay ahead of the game by establishing robust AI strategies and investing in strategic AI partnerships [with cloud providers].”
