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- Cloud spending is still growing but at lower rates ☁️
Cloud spending is still growing but at lower rates ☁️
And also: Zendesk Q3 🪙, mCloud and Google Cloud 🤝, Redundancy issue at Zscaler 🤐
This is the Cloudly Update. Helping you stay above the Clouds.
Today we bring you:
Gartner sees cloud spending growth despite a slowdown
Synergy Research conclude that cloud spending is still up, but at slower growth rates
Zendesk Q3 2022
mCloud and Google Cloud partner to launch a trio of sustainability apps
Redundancy issue at Zscaler
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Although enterprises face budget cutbacks and are pressured to optimize their costs, Gartner sees a 20.7% y/y increase in cloud spending in 2023. It will mark $591.80 billion as per the estimations.
Gartner projections are based on the following assumptions
IaaS spending will grow by 29.8% in 2023.
SaaS spending will grow by 16.8% in 2023.
PaaS spending will grow by 23.2% in 2023.
Gartner observes that more enterprises seek to migrate to the cloud to optimize their operational costs. SaaS spending growth is estimated to be relatively lower as companies don't plan to hire technical staff to develop modern SaaS applications.
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Synergy Research shows that Q3 enterprise spending on cloud infrastructure services exceeded $57 billion, up over 11 billion Y-o-Y. It represents an incremental spending growth of 24% Y-o-Y.
Public IaaS and PaaS services account for the bulk of the market, which grew by 26% in Q3.
Amazon, Microsoft, and Google combined had a 66% share of the worldwide market in the quarter, up from 61% a year ago.
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Zendesk, in its Q3, reported that its revenues grew by 20.1% y/y to $416.9 million, slightly behind the market expectations of $425.41 million. GAAP operating loss is $55.4 million, which means a loss of $0.48 per basic and diluted share.
Excluding non-recurring expenses, Zendesk reported a non-GAAP operating income of $48.9 million which means net income per share is $0.32(basic) and $0.28(diluted). This is better than market expectations of $0.21.
Due to Zendesk's pending acquisition by an investor group led by Hellman & Friedman Advisors LLC and Permira Advsiers LLC, which was announced on June 24, 2022, the company was evasive about its forward-looking statements.
Zendesk has also suspended its financial guidance for the continuing year in light of the pending transaction.
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mCloud entered a strategic partnership with Google Cloud to launch three AI-powered sustainability applications. They plan to jointly co-market these applications to customers worldwide, offering services to specific customers in the USA, Canada, UK, Europe, Saudi Arabia, Malaysia, and Japan.
mCloud's applications target oil and gas facilities, commercial buildings, and wind farms. Its twin capabilities measure, locate, and correct harmful emissions, eliminate energy waste, minimize carbon and methane footprints, and maximize the contributions of renewable wind energy around the world.
mCloud will directly integrate and leverage core Google Cloud services such as Google Earth Engine, Vision AI, Natural Language AI, Translation AI, TensorFlow, and more.
Partnership plans to have AssetCare available on the Google Cloud Marketplace in 2022.
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In the past two weeks, outages at cybersecurity services firm Zscaler resulted in latency, packet loss, and outages for some businesses.
The previous week, the company warned clients that they could experience packet loss due to damage to a transoceanic cable near France.
Such outages are uncommon, but companies should architect their cloud infrastructure to handle them, especially when relying on cloud services for security.
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