A record-high $41.8 billion was spent on cloud computing in the recently ended quarter as businesses leaned heavily on the internet to survive the pandemic, market tracker Canalys said on Thursday.

Spending on "cloud infrastructure services" around the world was up nearly $11 billion from the first three months of last year, according to Canalys.

"Cloud emerged as a winner across all sectors over the last year, basically since the start of the Covid-19 pandemic and the implementation of lockdowns," said Canalys research analyst Blake Murray.

"Organizations depended on digital services and being online to maintain operations and adapt to the unfolding situation."

Spending on "cloud infrastructure services" is up nearly $11 billion from the first three months of 2020
Spending on "cloud infrastructure services" is up nearly $11 billion from the first three months of 2020 AFP / Lionel BONAVENTURE

Despite large-scale spending on cloud in the past year, most businesses have yet to make the "digital transformation," according to Murray.

The analyst expected "migration" to the cloud to continue as confidence in the economy improves, and postponed projects to take on new life.

Amazon Web Services was the leading cloud service provider in the quarter, accounting for 32 percent of the market, according to Canalys.

Microsoft's Azure platform was second with 19 percent of the market, while Google Cloud had a 7 percent market share.

Each of the rivals saw their cloud businesses grow, contributing to blockbuster overall earnings reported this week.

Coronavirus