Global spending on public cloud services by end-users is set to reach $304.9 billion next year, a new forecast by Gartner claims. The market analysts are saying that the market will grow by 18.4 percent, up from $257.5 billion this year, and that it will continue growing in the years to come.
The report further stated that cloud spending will essentially cannibalize technology budgets, as most of IT spending will shift into cloud in the aftermath of the Covid-19 crisis. That being said, cloud is projected to make up as much as 14.2 percent of the total global enterprise IT spending market in 2024, up from 9.1 percent this year.
Of the various things cloud offers, SaaS remains king, but it won’t be without a challenger. While SaaS is forecast to grow to $117.7 billion next year, PaaS (application infrastructure as a service) is expected to grow faster – 26.6 percent. This growth will be fueled mostly by the Covid-19 pandemic and the need for high-performing, content-rich, scalable infrastructure.
Gartner expects the growth of public cloud solutions to be sustained through 2024. Cloud service providers teaming up with telcos, as well as an increasingly remote workforce, could all lead to further market growth.
“The Covid-19 pandemic forced organizations to quickly focus on three priorities: preserve cash and optimize IT costs, support and secure a remote workforce, and ensure resiliency,” said Sid Nag, research vice president at Gartner. “Investing in cloud became a convenient means to address all three of these needs.”
The full report can be found on this link.