Gartner: Spending on Public Cloud Services Will Hit USD 591B In 2023

Highlights:

  • The global expenditure on public cloud services will increase by 20.7% to USD 591.80 billion in 2023, according to a new Gartner Inc. prediction issued today.
  • Six key segments make up Gartner’s prediction for the cloud service industry.

According to a new Gartner Inc. prediction issued today, the global expenditure on public cloud services will increase by 20.7% to USD 591.80 billion in 2023.

The research company also revealed its 2022 spending forecast. This year, corporations are projected to spend USD 490.3 billion on cloud services, an 18.8% rise from the USD 412.6 billion spent in 2021. The market’s growth rate is expected to increase from 18.8% this year to 20.7% in 2023, showing rising enterprise demand across all categories of cloud services, evidenced by the market’s predicted growth rate acceleration.

Gartner Vice President Analyst Sid Nag said, “Current inflationary pressures and macroeconomic conditions are having a push and pull effect on cloud spending. Cloud computing will continue to be a bastion of safety and innovation, supporting growth during uncertain times due to its agile, elastic, and scalable nature.”

Six key segments make up Gartner’s prediction for the cloud service industry. The Infrastructure-as-a-Service (IaaS) sector is anticipated to see the fastest growth in 2023. IaaS spending will rise by at least 29.8% to USD 150.2 billion, according to Gartner’s prediction.

Sid Nag further said, “Cloud migration is not stopping. IaaS will naturally grow as businesses accelerate IT modernization initiatives to minimize risk and optimize costs. Moving operations to the cloud also reduces capital expenditures by extending cash outlays over a subscription term, a key benefit in an environment where cash may be critical to maintaining operations.”

It is anticipated that the Platform-as-a-Service (PaaS) and software-as-a-service markets will expand by 23.2% and 16.8%, respectively. The investment in PaaS is projected to rise from USD 110.6 billion in 2018 to USD 136.4 billion in 2023. SaaS budgets will increase during the same period from USD 146.3 billion to over USD 195.2 billion.

The cloud service market prediction by Gartner also includes three other segments. These divisions consist of desktop-as-a-service, cloud management and security services, and business process-as-a-service.

Desktop-as-a-service is the umbrella name for systems that a firm might utilize to offer cloud-based desktops to its employees. These workstations are more manageable than conventional personal PCs. According to Gartner, spending on DaaS will reach USD 2.53 billion this year and USD 3.11 billion by 2023.

Gartner’s market projection for cloud management and security includes technologies that make it easier for businesses to maintain and protect the cloud services they acquire. The research group anticipates that investment in this sector will increase from USD 34.1 billion in 2022 to USD 41.6 billion in 2023.

BPaaS, or Business Process-as-a-Service, is Gartner’s sixth key area of emphasis. This category includes cloud-based business process outsourcing services, which assist businesses with duties such as application maintenance. Gartner predicts that the BPaaS market sector will increase to USD 60.10 billion this year and USD 65.1 billion in 2023.

The market for cloud services is projected to expand much quicker than overall spending on information technology in 2023. Gartner forecasts that global IT investment will increase by 5.1% annually to USD 4.6 trillion in 2023.

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