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Cloud

Bookings for the big three hyperscalers are rebounding on strong demand for AI. Will AI-driven complexity create more opportunity for managed service providers?

Data Watch

Bookings for the Big Three Hyperscalers are Rebounding Chart

Background

IaaS bookings growth was very strong through 2022, then went negative for five consecutive quarters as enterprises responded to the uncertain macroeconomic climate by optimizing their existing cloud investments.

That has changed in 2024: year-to-date bookings for the big three hyperscalers – AWS, Google and Microsoft – are up double digits.

We believe that AI is driving some of this new growth and that it has legs as enterprises plan to increase their consumption of IaaS in 2025.

The Details

  • Bookings for AWS, Google and Microsoft are up 14% year to date.
  • 40% of enterprises plan on increasing their cloud consumption over the next 12 months.

What’s Next?

AWS, Google and Microsoft have an expanding portfolio of enabling technologies for both data and AI (which is driving some of the aforementioned growth). They want as much of this AI work to stay in their ecosystem as possible, but there is also an emerging trend of interoperability of data and AI services across cloud computing environments.

For example, the new interoperability of Oracle Cloud Infrastructure across AWS, Azure and GCP will make it easier for enterprises to blend AI and data services across cloud providers.

While deploying data and AI services within large clouds may be getting easier, what will likely not be getting easier is managing the entire cloud estate. Enterprise cloud environments are already complex; this shift to an inter-cloud data and AI architecture could introduce even more complexity.

Almost half of enterprises plan on consolidating the number of MSPs they use to manage cloud over the next 12 months. However, given the enormous amount of demand for data and AI services – and the increased complexity this will likely introduce into enterprise environments – this may not be a realistic goal for sourcing and technology leaders in 2025.

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About the authors

Stanton Jones

Stanton Jones

Stanton helps enterprise technology leaders, IT service providers and buy- and sell-side professionals make sense of the global IT services sector. Stanton's weekly briefing - the Index Insider - is read by thousands of industry stakeholders each week.
David Menninger

David Menninger

David is responsible for the overall research direction of data, information and analytics technologies at Ventana Research covering major areas including Analytics, Big Data, Business Intelligence and Information Management along with the additional specific research categories including Information Applications, IT Performance Management, Location Intelligence, Operational Intelligence and IoT, and Data Science. David is also responsible for examining the role of cloud computing, collaboration and mobile technologies as they affect these areas. David brings to Ventana Research over twenty-five years of experience, through which he has marketed and brought to market some of the leading edge technologies for helping organizations analyze data to support a range of action-taking and decision-making processes. Prior to joining Ventana Research, David was the Head of Business Development & Strategy at Pivotal a division of EMC, VP of Marketing and Product Management at Vertica Systems, VP of Marketing and Product Management at Oracle, Applix, InforSense and IRI Software. David earned his MS in Business from Bentley University and a BS in Economics from University of Pennsylvania.