From huge multinational corporations to normal everyday end users, the cloud has introduced a level of autonomy and efficiency never seen before.
Cloud computing provides on-demand access to applications, platforms, and infrastructure without the need for heavy infrastructure investment. The majority of these services fall into three categories:
IaaS (Infrastructure as a Service)
PaaS (Platform as a Service)
SaaS (Software as a Service)
As this space continues to grow and technology develops, cloud entrepreneurs and innovators will continue to propel the industry to newer and ever more exciting heights.
But where exactly are all of these cutting-edge cloud collectives congregating, which countries are leading the charge into a cloud-based future, and what factors are influencing this rapid rise of technological greatness?
Where in the world has the most cloud computing companies?
#1 United States
Startups
859
Established
1206
Total
2065
#2 United Kingdom
Startups
120
Established
142
Total
262
#3 Canada
Startups
81
Established
88
Total
169
#4 China
Startups
68
Established
89
Total
157
#5 India
Startups
103
Established
53
Total
156
#6 Germany
Startups
71
Established
59
Total
130
#7 Israel
Startups
76
Established
53
Total
129
#8 Australia
Startups
43
Established
49
Total
92
#9 France
Startups
39
Established
44
Total
83
#10 Japan
Startups
37
Established
44
Total
81
#11 The Netherlands
Startups
26
Established
40
Total
66
#12 Singapore
Startups
33
Established
13
Total
46
#13 Spain
Startups
24
Established
20
Total
44
#14 Brazil
Startups
19
Established
20
Total
39
#15 Sweden
Startups
13
Established
23
Total
36
#16 Italy
Startups
19
Established
15
Total
34
#17 Switzerland
Startups
15
Established
18
Total
33
#18 Denmark
Startups
4
Established
23
Total
27
#19 Belgium
Startups
13
Established
13
Total
26
#20 South Korea
Startups
18
Established
7
Total
25
#21 Norway
Startups
6
Established
16
Total
22
#22 Poland
Startups
15
Established
7
Total
22
#23 Hong Kong
Startups
10
Established
9
Total
19
#24 New Zealand
Startups
9
Established
10
Total
19
#25 United Arab Emirates
Startups
8
Established
11
Total
19
#26 Finland
Startups
9
Established
9
Total
18
#27 Taiwan
Startups
9
Established
8
Total
17
#28 Ireland
Startups
3
Established
13
Total
16
#29 Russian Federation
Startups
4
Established
12
Total
16
#30 Austria
Startups
8
Established
7
Total
15
#31 Bulgaria
Startups
7
Established
7
Total
14
#32 Romania
Startups
7
Established
6
Total
13
#33 Estonia
Startups
10
Established
2
Total
12
#34 Ukraine
Startups
6
Established
6
Total
12
#35 Portugal
Startups
9
Established
2
Total
11
#36 Czech Republic
Startups
5
Established
5
Total
10
#37 Greece
Startups
4
Established
6
Total
10
#38 Mexico
Startups
5
Established
5
Total
10
#39 South Africa
Startups
4
Established
6
Total
10
#40 Turkey
Startups
5
Established
4
Total
9
#41 Argentina
Startups
4
Established
4
Total
8
#42 Hungary
Startups
3
Established
5
Total
8
#43 Saudi Arabia
Startups
4
Established
4
Total
8
#44 Vietnam
Startups
5
Established
3
Total
8
#45 Cyprus
Startups
5
Established
2
Total
7
#46 Malaysia
Startups
4
Established
3
Total
7
#47 Indonesia
Startups
3
Established
3
Total
6
#48 Nigeria
Startups
3
Established
3
Total
6
#49 Colombia
Startups
3
Established
2
Total
5
#50 Luxembourg
Startups
4
Established
1
Total
5
*Startups defined as businesses founded from 2017 to present day.
Top 5 countries with the most cloud companies
United States - 2065
United Kingdom - 262
Canada - 169
China - 157
India - 156
Although there is strong competition globally in cloud-based tech companies, it only seems fair that the birthplace of the internet is also a major hotspot for technological advancement; with the highest proportion of cloud-based companies in the world. The United States is known for its vast array of tech entrepreneurs and development hubs, making it integral for many cloud-based innovations.
The hotly-contested second spot goes across the Atlantic to the United Kingdom, where the government has recently set core objectives to "sustain strategic advantage" in its technological developments by 2023.
As a whole, European countries feature more on the top 20 than any other continent, with locations including Sweden, France, and the Netherlands boasting widely diverse clusters of cloud-based companies.
Which US states have the most cloud companies?
When it comes to disruptive technological breakthroughs, the United States is arguably unmatched; hosting some of the world's leading cloud computing for both long-standing and startup businesses alike.
#1 California
Startups
343
Established
499
Total
842
#2 New York
Startups
68
Established
83
Total
151
#3 Texas
Startups
57
Established
91
Total
148
#4 Massachusetts
Startups
38
Established
73
Total
111
#5 Florida
Startups
43
Established
54
Total
97
#6 Washington
Startups
34
Established
43
Total
77
#7 Virginia
Startups
22
Established
39
Total
61
#8 Illinois
Startups
24
Established
31
Total
55
#9 Colorado
Startups
15
Established
30
Total
45
#10 New Jersey
Startups
15
Established
22
Total
37
#11 Georgia
Startups
14
Established
22
Total
36
#12 North Carolina
Startups
22
Established
12
Total
34
#13 Pennsylvania
Startups
15
Established
17
Total
32
#14 Maryland
Startups
9
Established
21
Total
30
#15 Delaware
Startups
26
Established
2
Total
28
#16 Michigan
Startups
12
Established
14
Total
26
#17 Arizona
Startups
10
Established
15
Total
25
#18 Ohio
Startups
13
Established
10
Total
23
#19 Indiana
Startups
5
Established
14
Total
19
#20 Utah
Startups
6
Established
13
Total
19
#21 Oregon
Startups
9
Established
9
Total
18
#22 Minnesota
Startups
3
Established
14
Total
17
#23 Tennessee
Startups
7
Established
7
Total
14
#24 Connecticut
Startups
1
Established
12
Total
13
#25 Nevada
Startups
8
Established
5
Total
13
#26 District of Columbia
Startups
8
Established
4
Total
12
#27 South Carolina
Startups
5
Established
7
Total
12
#28 Missouri
Startups
4
Established
7
Total
11
#29 Alabama
Startups
-
Established
6
Total
6
#30 Kansas
Startups
2
Established
4
Total
6
#31 Kentucky
Startups
2
Established
3
Total
5
#32 Louisiana
Startups
3
Established
2
Total
5
#33 Montana
Startups
2
Established
3
Total
5
#34 New Hampshire
Startups
2
Established
3
Total
5
#35 Idaho
Startups
1
Established
3
Total
4
#36 Nebraska
Startups
1
Established
3
Total
4
#37 Wisconsin
Startups
2
Established
2
Total
4
#38 Wyoming
Startups
4
Established
-
Total
4
#39 Iowa
Startups
-
Established
3
Total
3
#40 New Mexico
Startups
1
Established
1
Total
2
#41 Rhode Island
Startups
-
Established
2
Total
2
#42 Hawaii
Startups
1
Established
-
Total
1
#43 Maine
Startups
1
Established
Total
1
#44 Oklahoma
Startups
-
Established
1
Total
1
#45 Vermont
Startups
1
Established
-
Total
1
*Startups defined as businesses founded from 2017 to present day.
Top 5 states with the most cloud companies
California - 842
New York - 151
Texas - 148
Massachusetts - 111
Florida - 97
It’s no surprise that California is leading the pack with 842 cloud companies in the state alone. Silicon Valley has long been known as the global center for high technology and innovation with cloud companies across the state, from Santa Clara to Palo Alto and Cupertino to Irvine.
But when it comes to cloud computing, it’s no longer all about the West Coast. Following the “Golden State’s” example, the likes of New York (151) and Texas (148) are forging their own paths in the East and South respectively. Although these 299 businesses pale in comparison to California’s cloud catalogue; they are definitely places to watch for future development.
The future of cloud computing
The United States has long established itself as a key player with regards to its high concentration of cloud businesses. However, the future could look very different, as other nations climb the ranks.
The following reveals the most up-and-coming countries for cloud entrepreneurs, based on the number of cloud-based startups in the past 5 years. This has been plotted against each country’s respective population to show the true scale of growth.
1.
Israel 9m population
76 startups
8.4 per million
2.
Estonia 1.3m population
10 startups
7.54 per million
3.
Luxembourg 0.6m population
4 startups
6.17 per million
4.
Singapore 6m population
33 startups
5.52 per million
5.
Cyprus 1.3m population
5 startups
3.99 per million
6.
United States 338.3m population
859 startups
2.54 per million
7.
Canada 38.5m population
81 startups
2.11 per million
8.
United Kingdom 67.5m population
120 startups
1.78 per million
9.
New Zealand 5.2m population
9 startups
1.74 per million
10.
Switzerland 8.7m population
15 startups
1.72 per million
11.
Australia 26.2m population
43 startups
1.64 per million
12.
Finland 5.5m population
9 startups
1.62 per million
13.
The Netherlands 17.6m population
26 startups
1.48 per million
14.
Hong Kong 7.5m population
10 startups
1.34 per million
15.
Sweden 10.6m population
13 startups
1.23 per million
16.
Belgium 11.7m population
13 startups
1.12 per million
17.
Norway 5.4m population
6 startups
1.1 per million
18.
Latvia 1.8m population
2 startups
1.08 per million
19.
Bulgaria 6.8m population
7 startups
1.03 per million
20.
Austria 8.9m population
8 startups
0.89 per million
Other notable countries
22.
Germany 83.4m population
71 startups
0.85 per million
26.
France 64.6m population
39 startups
0.6 per million
29.
Spain 47.6m population
24 startups
0.5 per million
44.
Italy 59m population
19 startups
0.32 per million
46.
Japan 123.9m population
37 startups
0.3 per million
61.
India 1417.5m population
103 startups
0.07 per million
68.
China 1425.9m population
68 startups
0.05 per million
Israel’s cloud startup economy is growing fast, with the country boasting 76 cloud startups founded since 2017, as well as the highest proportion of cloud-based businesses per million people at 8.4.
Another notable location for growth among the top countries is Singapore. Its prowess for the future of the cloud is exemplified through its 33 cloud computing startups founded in the last 5 years; its 5.5 cloud startups per million people; as well as a relatively low corporate tax rate (17%) and one of the fastest internet speeds in the world at 211Mbps.
For such a comparatively small island, Cyprus could be another cloud center to watch. With its forgiving corporate tax rate of 12.5%, and its Cypriot Investment Program affording relatively fast citizenship for foreign investors; the 5 cloud computing startups founded there since 2017 could see some healthy contemporaries spring up alongside them in the very near future.
Which cloud startups have had the most investment?
Organization
Total Funding
Investors
Top 5 Investors
eStruxture
$919m
6
Deutsche BankScotiabankCaisse de Depot et Placement du QuebecNational Bank of CanadaFengate Asset Management
Kitopi
$804m
20
B. Riley FinancialSoftBank Vision FundGlobal VenturesEndeavor CatalystVentureSouq
Group 42
$800m
2
Silver LakeMubadala
MegazoneCloud
$673m
20
Salesforce VenturesMBK PartnersKB Financial GroupKorea Investment PartnersKorea Development Bank
eStruxture is the largest Canadian-owned network and colocation data center provider and has received the most funding since its inception in 2017. The business has had investments totaling over $919 million from huge investors including the National Bank of Canada.
Dubai-based Kitopi is a service provider for restaurants enabling them to open delivery-only locations and has raised over $800 million in investment since 2018. The brand now operates with a dual strategy, combining cloud kitchen tech with insights from traditional restaurants to help enable more extensive data collection for their customers.
Another UAE-based company, Group 42 (sometimes referred to as G42) has attracted substantial amounts of funding. The Silver Lake-backed business has raised $800 million towards its AI-focused endeavors in its 4 short years of trading.
The year of cloud computing
1950
1951Iron Mountain is founded
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962J.C.R. Licklider presents an idea for an interconnected system of computers
1963
1964IBM launches the System/360 family of mainframe computer systems
1967
1968
1969Bob Taylor and Larry Roberts develop ARPANET
1974
1975
1977World's first commercial local area network goes into service at Chase Manhattan Bank, New YorkThe cloud symbol is used to represent networks of computing equipment in the original ARPANET
1981Bill Gates proclaims, “No one will need more than 637 kb of memory for a personal computer”The cloud symbol is used by the CSNETDavid Goldman founds Sage in Newcastle-Upon-Tyne, UK
1982The first Ethernet adapter card for the IBM personal computer is released
1984Sun Microsystems develops the network file system protocol
1989Tim Berners-Lee invents the World Wide WebSage is floated on the London Stock Exchange
1993General Magic and AT&T use the term 'cloud' to refer to platforms for distributed computing
1995Infrastructure as a Service (IaaS) provider iland is founded
1996Compaq's "Internet Solutions Division Strategy for Cloud Computing" first documents use of the term "cloud computing"Space Jam is released in theaters
1998Rackspace is founded
1999Salesforce.com launchesVMware launches VMware WorkstationSage enters the FTSE 100
2000E3 hosts the first ever cloud gaming demonstration by G-cluster
2002Microsoft launches Xbox LiveAmazon launches Amazon Web Services (AWS)
2003Steve Perlman founds cloud gaming company OnLive
2005Cloud content management and file sharing service Box is founded
2006The term “cloud computing” is introduced to the industry by Google CEO Eric SchmidtSpotify is foundedAmazon Web Services (AWS) launches cloud computing servicesSony launches the PlayStation Network (PSN)Fotango launches the world's first public platform as a service known as "Zimki"
2007Apple launches the first iPhoneFilesharing service Dropbox is foundedIaaS, PaaS, and SaaS terms are formalizedNetflix launches a video streaming service
2008Google App Engine (GAE) launchesEucalyptus launches the first open source AWS API compatible platform for deploying private cloudsNASA's OpenNebula becomes the first open-source software for deploying private and hybrid clouds
2009Oracle's founder Larry Ellison describes cloud computing as 'water vapour', asserting that it's just "a computer attached to a network"
2010Microsoft Azure launches
2011Apple becomes the world’s most valuable companyPlayStation Network (PSN) hackIraq war endsIBM SmartCloud launches
2014Google launches Kubernetes, an open-source container-orchestration system for automating application deployment, scaling, and management
2015NVidia launches cloud gaming service GeForce Now
2016UK votes for Brexit in the EU ReferendumDonald Trump wins US presidential election
2017Microsoft launches Xbox Game PassHuawei, Tencent, and Alibaba build out major data centers in ChinaSage announces the acquisition of IntacctSage introduces Sage Business Cloud
2018Microsoft launches Project xCloud, eventually known as Xbox Cloud GamingApache CloudStack is released
2020Covid-19 Pandemic
2017 was the year of cloud computing, with the majority of cloud-based businesses founded in this year than any other from the findings.
The years prior saw many predictions about which startups would reach prominence in the future; with a strong focus on artificial intelligence, virtual reality, and cybersecurity. Within the cloud space, businesses like Cyxtera and Upstack shattered expectations, with the two businesses now estimated to turn over $1.1 billion in revenue collectively.
Methodology
The data are representative of 5,000 businesses only.
Using the Crunchbase database, data was collected for 5,000 active cloud-based businesses from a wide range of cloud industry sectors, including:
Computing
Data services
Infrastructure
Management
Security
Storage
Privacy
Where businesses are shown to have been founded predating the use of “cloud computing” as a term (2006); these preexisting businesses have been included as they have since developed their strategies and product offering to focus on cloud computing.
“Startups” are defined as companies founded within the last five years (2017 to August 2022).
The location-based results are representative of those present in the pull results, therefore not all countries have been represented due to a lack of presence in the data set.
The future of the cloud
Population data was collected from worldpopulationreview.com
Internet speed data was collected from speedtest.net
Corporation tax data was collected from taxfoundation.org
The Year of the Cloud tooltip data collected from timelines.issarice.com
The Cayman Islands has been excluded as the metric points for this country are not directly comparable to the remainder of the countries in the data results.