Gartner Predicts Worldwide Public Cloud End-User Spending to Reach Nearly $500 Billion in 2022

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According to the most recent Gartner, Inc. forecast, global end-user spending on public cloud services is expected to increase 20.4% to $494.7 billion in 2022, up from $410.9 billion in 2021. End-user spending is estimated to hit approximately $600 billion by 2023.

Infrastructure-as-a-service (IaaS) is expected to increase at the fastest rate of 30.6 percent in 2022, followed by desktop-as-a-service (DaaS) at 26.6 percent and platform-as-a-service (PaaS) at 26.1 percent (see Table 1). Because of the new reality of hybrid work, firms are shifting away from traditional client computing solutions like desktops and other physical in-office equipment and toward DaaS, which is expected to reach $2.6 billion in 2022. PaaS spending has increased to $109.6 billion due to end-user demand for cloud-native capabilities.

“Cloud is the powerhouse that drives today’s digital organizations. 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,”

said Sid Nag, research vice president at Gartner.

SaaS is the most popular public cloud service, with end-user spending expected to reach $176.6 billion in 2022. As organizations adopt multiple routes to market with SaaS, such as through cloud marketplaces, and continue to break up larger, monolithic apps into composable bits for more efficient DevOps operations, Gartner forecasts consistent growth in this area.

“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. As a result, they are generally more expensive which is fueling spending growth,”

said Nag, research vice president at Gartner.

Emerging technologies in cloud computing such as hyper-scale 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.

“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. Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty.

IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys. The organizations combining cloud with other adjacent, emerging technologies will fare even better,”

said Nag, said Nag, research vice president at Gartner.

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