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Led by Microsoft, global revenue for the public cloud services market reached $545.8 billion last year, an increase of 22.9 per cent over 2021, according to a new report.

Top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce, Google, and Oracle – captured more than 41 per cent of the worldwide total and growing 27.3 per cent year over year, according to the latest IDC data.

With offerings in all four deployment categories, Microsoft remained in the top position in the overall public cloud services market with 16.8 per cent share, followed by Amazon Web Services with 13.5 per cent share.

Software as a Service – applications (SaaS-applications) continued to be the largest source of public cloud services revenue, accounting for more than 45 per cent of the total in 2022.

Infrastructure as a Service (IaaS) was the second largest revenue category with 21.2 per cent of the total while Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) delivered 17 per cent and 16.7 per cent of overall revenue, respectively.

“The assessment and use of AI, triggered by generative AI, is starting to dominate the planning and long term investment agendas of businesses and cloud providers will play a significant role in the evaluation and adoption of AI enablement services," said Rick Villars, group vice president, Worldwide Research at IDC.

Meanwhile, the revenue for foundational cloud services that support digital-first strategies saw revenue growth of 28.8 per cent. 

"SaaS – Applications remain the largest segment of the more than $547 billion cloud software market forecast by the end of 2023," said Frank Della Rosa, research vice president, SaaS, Business Platforms, and Industry Cloud at IDC.