Webscale Network Operators: 3Q22 Market Review
This report reviews the growth and development of the webscale network operator (WNO) market. On an annualized (12 month) basis through 3Q22, webscalers represent $2.23 trillion (T) in revenues (+8% YoY), $255 billion (B) in R&D spending (+23% YoY), and $199B in capex (+19% YoY), and had $613B of cash and short-term investments (-19% YoY) on the books as of September 2022. Webscalers employed approximately 4.095M people in September 2022, from 4.047M in June 2022 and 3.941M in September 2021.
The top 3 cloud providers (Alphabet, Amazon, and Microsoft), plus Facebook were 75% of 4Q21-3Q22 webscale capex, a bit higher than the 72% recorded in the 3Q21 annualized period. That’s because of Facebook’s metaverse-driven spending spree.
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