Conversational Customer Communications Grow on Black Friday
Infobip data shows that customers prefer conversational experiences on Black Friday, driven by rich channels such as RCS.
In the third quarter of 2024, global spending on cloud infrastructure services increased by 21% year on year, reaching $82 billion, according to Canalys. Customer investment in the hyperscalers’ AI offerings fueled growth, prompting leading cloud vendors to escalate their investments in AI.
The rankings of the top three cloud vendors (AWS, Microsoft Azure, and Google Cloud) remained stable from the previous quarter, with these providers together accounting for 64% of total expenditure. Total combined spending with these three providers grew by 26% year on year, and all three reported sequential growth.
Market leader AWS maintained a year-on-year growth rate of 19%, consistent with the previous quarter. But it was outpaced by both Microsoft, with 33% growth, and Google Cloud, with 36% growth. In actual dollar terms, however, AWS outgrew both Microsoft and Google Cloud, increasing sales by almost $4.4 billion in the previous year.
In 3Q24, the cloud services market saw strong, steady growth. All three cloud hyperscalers reported positive returns on their AI investments, which have begun to contribute to their overall cloud business performance. These returns reflect a growing reliance on AI as a key driver for innovation and competitive advantage in the cloud.
With the increasing adoption of AI, demand for high-performance computing and storage continued to rise, putting pressure on cloud providers to expand infrastructure. In response, leading cloud providers are prioritizing large-scale investments in next-generation AI infrastructure. To mitigate the risks associated with under-investment, they have adopted over-investment strategies, ensuring their ability to scale offerings in line with the growing needs of AI customers. Accordingly, they have all signaled that capital expenditure will sustain their rapid growth trajectories and are expected to continue on this path into 2025.
“Continued substantial expenditure will present new challenges, requiring cloud vendors to carefully balance their investments in AI with the cost discipline needed to fund these initiatives,” said Rachel Brindley, Senior Director at Canalys. “While companies should invest sufficiently in AI to capitalize on technological growth, they must also exercise caution to avoid overspending or inefficient resource allocation. Ensuring the sustainability of these investments over time will be vital to maintaining long-term financial health and competitive advantage.”
“On the other hand, the three leading cloud providers are also expediting the update and iteration of their AI foundational models, continuously expanding their associated product portfolios,” said Yi Zhang, Analyst at Canalys. “As these AI foundational models mature, cloud providers are focused on leveraging their enhanced capabilities to empower a broader range of core products and services. By integrating these advanced models into their existing offerings, they aim to enhance functionality, improve performance, and increase user engagement across their platforms, thereby unlocking new revenue streams.”