The U.S. cloud market continues to be in "rude good health with a year-on-year growth rate that is right in the middle of the range of growth rates seen over the last 14 quarters," according to Chief Analyst John Dinsdale at Synergy Research Group (SRG), which released new data about the strength of the U.S. cloud market.

Gartner supported Dinsdale's "rude good health" view with a public cloud end-user spending report released on October 31, 2022, that forecasts approximately $600 billion in 2023. The firm's report stated that worldwide end-user spending on public cloud services is forecast to grow 20.7% to a total of $591.8 billion in 2023, up from $490.3 billion in 2022. The 2023 forecast is higher than 2022's 18.8% growth forecast.

SRG's report noted that the worldwide third-quarter growth rate for 2022 was slightly lower due to the strong U.S. dollar and a "severely restricted Chinese market."

"Focusing on US market numbers circumvents those macro issues and demonstrates the underlying, fundamental strength of the cloud market," Dinsdale wrote.

Yesterday SRG released research that showed globally Google Cloud Platform grew faster than Amazon Web Services (AWS) and Microsoft Azure during the third quarter.

Amazon, Microsoft, and Google accounted for 76% of the U.S. market but Snowflake, MongoDB, and Oracle all saw growth in the quarter. SRG reported that Google Cloud garnered 11% of the $57.5 billion spent on cloud infrastructure services during the third quarter, which was up from 10% of the $54.7 billion it earned the previous quarter.

As most of the cloud providers have released their third-quarter earnings, SRG estimates that quarterly cloud infrastructure service revenues in the U.S. — including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and hosted private cloud services — were approaching $23 billion, with trailing 12-month revenues reaching $84 billion, noted in the Dinsdale's report.

"Public IaaS and PaaS services account for the bulk of the market and they continue to grow more rapidly than hosted private cloud services. It is notable that PaaS share of the market is higher in the US than in other parts of the world, demonstrating the more developed nature of the US market," he wrote.

"This talks to both the fundamental strength of the US cloud market and implications for non-US markets once the impact of the exceptional circumstances diminish. Synergy’s cloud market forecasts continue to predict strong worldwide market growth over the next five years," Dinsdale noted referring to the U.S. cloud market report.