Enterprise and Consumer’s Use of Cloud Resources Changing to the New Normal because of COVID-19

PORTOLA VALLEY, Calif.  Aug. 5, 2020 —  According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud market revenue grew 11% Y/Y in 2Q’20 while the supply chain for Data Center Equipment into Hyperscalers performed unevenly due to shifting lead times and trade war impacts.

650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.

2Q’20 Highlights:
* o    Search and Social revenue growth was uneven based on the change of viewing habits of consumers from COVID-19 as advertisers and consumers shifted behavior significantly during the quarter
* o    IaaS revenue growth was robust led by most surge capacity placed in IaaS companies' infrastructure instead of their own build-outs
* o    Four of the five largest hyperscalers are under US government scrutiny for monopolistic behavior
* o    Market capitalization is averaging over $1 Trillion for this group of companies
* o    Supply constraints remain in 3Q’20 related to COVID-19 and trade war events
* o    Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years
* o    US hyperscaler revenue is nearly 10X the size compared to Chinese hyperscaler revenue in 1H’20
* o    US hyperscaler influence on the supply chain is increasing

The 650 Group Cloud Reports include CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment.  Going beyond just cloud revenue provides a unique look into where and how the largest cloud providers deploy equipment.  In the report, you can see the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building out their own infrastructure.

“2Q20 IaaS cloud hit a record, far exceeding 4Q’19’s previous revenue record and over twice the revenue from just three years ago,” said Alan Weckel, founding analyst for 650 Group. “US trade war activities, mainly against Huawei, caused significant lead time increases in many critical components for cloud data center build-outs during the quarter as the 5G battle against China is having ripple effects into the cloud supply chain.”

About 650 Group 650 Group (www.650group.com) is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading-edge market trends and research and prides itself on first to market research with over 12 research programs focused on Cloud trends.

Surge Spending and Different Usage Patterns Change 2020 and 2021 CAPEX Trends

PORTOLA VALLEY, Calif.  May 5, 2020 —  According to a newly released report issued by founding analysts of 650 Group, the US Hyperscaler Cloud market revenue grew 20% Y/Y in Q1’20 while CAPEX used for Data Center Equipment grew unevenly during the same timeframe.

650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.

Q1’20 Highlights:
* o    Revenue Growth for US Hyperscalers was the slowest it has been in a decade
* o    The majority of Cloud Providers lowered CAPEX projections for 2020
* o    US Hyperscaler Cloud providers are running their servers and networks more efficiently compared to 2019, allowing them to surge capacity at a faster rate than DC buildouts
* o    Surge capacity in Q1’20 was very different between Search and Social companies like Facebook and Google and IaaS companies like Amazon and Microsoft.
* o    Capital Equipment Expenditures were constrained by supply constraints related to COVID-19; supply constraints remain in 2Q’20

The Cloud reports include CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment.  Going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment.  In the report, you can see the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building out their own infrastructure.

“Q1’20 Cloud results diverged from normal seasonality as the world rapidly shifted to work-from-home and remote forms of social and society interaction,” said Alan Weckel, founding analyst for 650 Group. “Cloud-based companies became increasingly important to society as social norms changed rapidly during Q1’20.  For businesses, the use of Cloud services becomes even more important in all verticals.  As we look towards the second half of 2020, companies that better use cloud resources to do business will emerge in a stronger position.”
For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com
About 650 Group 650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading-edge market trends and research and prides itself on first to market research.