Lean more in the complimentary Gartner webinar Cloud Computing Scenario: The Future of Cloud. Gartner clients can read more in Forecast: Public Cloud Services, Worldwide, 2020-2026, 1Q22 Update. “The organizations combining cloud with other adjacent, emerging technologies will fare even better.” “IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys,” said Nag. “Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty. “Driven by maturation of core cloud services, the focus of differentiation is gradually shifting to capabilities that can disrupt digital businesses and operations in enterprises directly,” said Nag. Gartner expects steady velocity within this segment as enterprises take multiple routes to market with SaaS, for example via cloud marketplaces, and continue to break up larger, monolithic applications into composable parts for more efficient DevOps processes.Įmerging technologies in cloud computing such as hyperscale edge computing and secure access service edge (SASE) are disrupting adjacent markets and forming new product categories, creating additional revenue streams for public cloud providers. SaaS remains the largest public cloud services market segment, forecasted to reach $176.6 billion in end-user spending in 2022. “As a result, they are generally more expensive which is fueling spending growth.” “Cloud native capabilities such as containerization, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditized compute such as IaaS or network-as-a-service,” said Nag.
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Dollars)Ĭloud Application Infrastructure Services (PaaS)Ĭloud System Infrastructure Services (IaaS)īPaaS = business process as a service IaaS = infrastructure as a service PaaS = platform as a service SaaS = software as a service. Note: Totals may not add up due to rounding.
Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6 billion in spending. The new reality of hybrid work is prompting organizations to move away from powering their workforce with traditional client computing solutions, such as desktops and other physical in-office tools, and toward DaaS, which is driving spending to reach $2.6 billion in 2022. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1% (see Table 1). “ CIOs are beyond the era of irrational exuberance of procuring cloud services and are being thoughtful in their choice of public cloud providers to drive specific, desired business and technology outcomes in their digital transformation journey.” “Cloud is the powerhouse that drives today’s digital organizations,” said Sid Nag, research vice president at Gartner. In 2023, end-user spending is expected to reach nearly $600 billion. Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total $494.7 billion, up from $410.9 billion in 2021, according to the latest forecast from Gartner, Inc.
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