Global End-User Spending On Cloud Services To Grow 21.7% In 2023: Report

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Global End-User Spending On Cloud Services To Grow 21.7% In 2023: ReportWorldwide end-user spending on public cloud services is forecast to grow 21.7 per cent to total $597.3 billion in 2023, up from $491 billion in 2022, according to a report.

According to Gartner's forecast, cloud computing is driving the next phase of digital business, as organisations pursue disruption through emerging technologies like generative artificial intelligence (AI), Web3 and the metaverse.

Web3 is described as a series of open-source and interconnected decentralised applications powered by blockchain computing architecture whereas metaverse is an equally open-source environment for virtual reality.

"Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, Vice-President Analyst, Gartner. "Organisations today view cloud as a highly strategic platform for digital transformation, which is requiring cloud providers to offer more sophisticated capabilities as the competition for digital services heats up."

While there is no universal standard for what should be classified as a hyperscaler, major cloud providers such as Amazon Web Services, Google Cloud, Microsoft Azure, IBM Cloud, and Alibaba Cloud fit the description.

All segments of the cloud market are expected to see growth in 2023. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2023 at 30.9 per cent, followed by platform-as-a-service (PaaS) at 24.1 per cent, according to Gartner.

Gartner predicts that by 2026, as much as 75 per cent of organisations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform.

"The technology substrate of cloud computing is firmly dominated by the hyperscalers, but the leadership of the business application layer is more fragmented," said Nag.

"Providers are facing demands to redesign SaaS offerings for increased productivity, leveraging cloud-native capabilities, embedded AI and composability - particularly as budgets are increasingly driven and owned by business technologists. This change will ignite a wave of innovation and replacement in the cloud platform and application markets," Nag added.


(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)