SaaS Brief

A Look at the World's Leading Cloud Computing Tech Hubs

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

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 Bank Scotiabank Caisse de Depot et Placement du Quebec National Bank of Canada Fengate Asset Management
Kitopi $804m 20 B. Riley Financial SoftBank Vision Fund Global Ventures Endeavor Catalyst VentureSouq
Group 42 $800m 2 Silver Lake Mubadala
MegazoneCloud $673m 20 Salesforce Ventures MBK Partners KB Financial Group Korea Investment Partners Korea Development Bank
Axonius $665m 18 Accel Vertex Ventures Lightspeed Venture Partners Bessemer Venture Partners Stripes
Orca Security $632m 17 Temasek Holdings GGV Capital CapitalG Stripes Adams Street Partners
Wiz $600m 9 Sequoia Capital Insight Partners Index Ventures Cerca Partners Salesforce
Edgio $463m 1 Goldman Sachs
Ampere Computing $426m 3 Oracle The Carlyle Group Arm Holdings
Clear Street $335m 9 NextGen Venture Partners Prysm Capital Walleye Capital Illia Polosukhin McLaren Strategic Ventures

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
1951 Iron Mountain is founded
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962 J.C.R. Licklider presents an idea for an interconnected system of computers
1963
1964 IBM launches the System/360 family of mainframe computer systems
1967
1968
1969 Bob Taylor and Larry Roberts develop ARPANET
1974
1975
1977 World'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
1981 Bill 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
1982 The first Ethernet adapter card for the IBM personal computer is released
1984 Sun Microsystems develops the network file system protocol
1989 Tim Berners-Lee invents the World Wide WebSage is floated on the London Stock Exchange
1993 General Magic and AT&T use the term 'cloud' to refer to platforms for distributed computing
1995 Infrastructure as a Service (IaaS) provider iland is founded
1996 Compaq's "Internet Solutions Division Strategy for Cloud Computing" first documents use of the term "cloud computing"Space Jam is released in theaters
1998 Rackspace is founded
1999 Salesforce.com launchesVMware launches VMware WorkstationSage enters the FTSE 100
2000 E3 hosts the first ever cloud gaming demonstration by G-cluster
2002 Microsoft launches Xbox LiveAmazon launches Amazon Web Services (AWS)
2003 Steve Perlman founds cloud gaming company OnLive
2005 Cloud content management and file sharing service Box is founded
2006 The 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"
2007 Apple launches the first iPhoneFilesharing service Dropbox is foundedIaaS, PaaS, and SaaS terms are formalizedNetflix launches a video streaming service
2008 Google 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
2009 Oracle's founder Larry Ellison describes cloud computing as 'water vapour', asserting that it's just "a computer attached to a network"
2010 Microsoft Azure launches
2011 Apple becomes the world’s most valuable companyPlayStation Network (PSN) hackIraq war endsIBM SmartCloud launches
2012 Donald Brydon becomes chairman of Sage
2013 Adobe Creative Cloud launchesGoogle Computer Engine (GCE) launches
2014 Google launches Kubernetes, an open-source container-orchestration system for automating application deployment, scaling, and management
2015 NVidia launches cloud gaming service GeForce Now
2016 UK votes for Brexit in the EU ReferendumDonald Trump wins US presidential election
2017 Microsoft launches Xbox Game PassHuawei, Tencent, and Alibaba build out major data centers in ChinaSage announces the acquisition of IntacctSage introduces Sage Business Cloud
2018 Microsoft launches Project xCloud, eventually known as Xbox Cloud GamingApache CloudStack is released
2020 Covid-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.

Data was collected on August 19, 2022.

Streamline & Scale Contract and Subscription Billing Automation for SaaS startups Talk to our experts

Back to Blog Home

Recent Posts