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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

650 Group’s Latest Cloud Market Report Shows US Hyperscalers Set Cloud Revenue and CAPEX ...

August 24, 2021 GMT

INCLINE VILLAGE, Nev., Aug. 24, 2021 (GLOBE NEWSWIRE) -- According to a newly released report issued by the 650 Group, US hyperscaler cloud market revenue grew 43% Y/Y in 2Q21 while the supply chain for Data Center Equipment into hyperscalers performed unevenly due to continued semiconductor and component shortages.  

650 Group’s Cloud Report covers Colocation, Infrastructure as a Service (IaaS), SaaS, and Search & Social for companies such as Amazon, Apple, Facebook, Google and Microsoft.

“2Q21 IaaS revenue hit a record, far exceeding 4Q20’s previous revenue record,” said Alan Weckel, founding analyst for 650 Group. “IaaS continues to increase in influence throughout the entire component and semiconductor supply chain. The number of applications that enterprises and consumers use each day continues to increase, and the majority of those applications exist in hyperscalers IaaS data centers. Many critical components for cloud data center build-outs during the quarter remain constrained.”

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2Q’21 Highlights:

  • Search and Social revenue surges. Google and Facebook remain dominant, but the rest of the market shows signs of gaining ground
  • IaaS revenue growth was robust as many enterprises rely on the cloud to support their new-normal hybrid workforce and environments
  • US Hyperscaler made approximately $1M in cloud revenue every minute during 2Q21
  • Supply Constraints remain in 2Q21 related to COVID-19 and trade war events
  • Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years
  • US Hyperscaler Revenue is Nearly 10X the size of Chinese Hyperscaler Revenue in 1H21
  • US Hyperscaler influence on the supply chain is increasing

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.

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 with over 12 research programs focused on Cloud trends.

Media Contact:
Greg Cross
greg@650group.com