Canalys published some market data. Worldwide cloud service spending is projected to grow by 20% in 2024. In Q4 2023, expenditure increased by 19% to reach US$78.1 billion, and total cloud infrastructure services spending for 2023 grew by 18% to US$290.4 billion. Amazon Web Services (AWS), Microsoft Azure, and Google Cloud collectively accounted for 66% of total spending, with Microsoft experiencing significant growth at 30%. AWS led the market with a 31% share, while Azure’s market share increased to 26%, and Google Cloud accounted for 10%. The demand for AI applications is driving the growth of cloud migration efforts and new demand.
Mid-market customers are facing challenges in finding the right technology mix and feeling ignored and mis-sold. Research from Microsoft partner Advania reveals that many customers are using outdated software, overspending on licensing fees, and struggling with old technology and inefficient processes. There is a desire for more suitable technology and reduced costs, with a perceived disconnect between mid-market organizations and big tech companies.
According to a TechTarget/Enterprise Strategy Group study, IT decision-makers in EMEA prioritize desktop productivity and PC refresh projects over Windows 11 deployments. Productivity suites like Microsoft Office and Google G-Suite are the top priority, offering unified platforms, cost savings, improved management, and enhanced security. While North American IT leaders prioritize Windows 11 upgrades, EMEA puts it in 6th place. PC refresh and mobile device refresh are also significant priorities in EMEA.
I’m going to highlight the mid-market opportunity. There’s a clear opportunity for IT service providers to bridge this gap by offering customized solutions that address the specific challenges mid-market businesses face. This includes transitioning to more current software solutions, optimizing licensing strategies, and facilitating technology upgrades that drive efficiency and cost savings. Leverage the cloud and consider the dynamics of the local market.
The difference in IT priorities between EMEA and North American decision-makers, particularly regarding desktop productivity, PC refresh projects, and Windows 11 deployments, highlights regional variations in IT strategy focus. The preference for productivity suites and hardware refreshes over OS upgrades in EMEA suggests a pragmatic approach to IT investments, prioritizing immediate operational benefits and user experience. More importantly, be in touch with your customers.