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CLOUD SECURITY: AI – AI Surge Predicted to Fuel 20% Growth in Global Cloud Spending – Research
By: Iain Fraser – Cybersecurity Journalist
CYBERInsights – The UK Small Business Cybersecurity Network Published in association with: R3 Data Recovery
#CyberInsights #CyberSecurity #CyberAwareness #CyberSafe #SME #SmallBusiness #AI #CloudSecurity

Global cloud infrastructure services spending reached $86 billion in Q4 2024, marking a 20% year-on-year increase. Full-year spending also grew 20%, rising from $267.7 billion in 2023 to $321.3 billion in 2024. Market intelligence firm Canalys forecasts 19% growth in 2025, driven primarily by the rapid adoption of AI models.

By late 2024, the top cloud vendors—AWS, Microsoft Azure, and Google Cloud—reported strong returns on AI investments, with AI applications significantly influencing their cloud business performance. However, as AI-driven demand surged, capacity constraints limited growth, creating a tight supply-demand balance.

AWS maintained a 19% annual growth rate, while Microsoft Azure and Google Cloud experienced a slight slowdown in growth compared to the previous quarter due to supply challenges. Despite this, the three largest cloud providers held a combined 64% market share, with their total spending rising 25% year-on-year.

As AI competition intensifies, cloud hyperscaler’s are ramping up investments in AI and cloud infrastructure to meet growing demand in 2025. Businesses relying on cloud services should anticipate continued expansion and evolving service capabilities as providers scale to accommodate the next wave of AI-driven innovation

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CYBER Insights – Helping Keep Small Business CYBERSafe!

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