Global Cloud Spending Expected To Grow 21.7% In 2023: Gartner Gartner predicts that by 2026, as much as 75% of organisations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The analyst firm Gartner recently stated that global end-user spending on public cloud services is forecast to grow 21.7% to total $597.3 billion in 2023, up from $491 billion in 2022. While all segments of the cloud market are expected to see spending growth in 2023, infrastructure-as-a-service (IaaS) spending is forecast to experience the highest rise, increasing by 30.9%, followed by platform-as-a-service (PaaS) at 24.1%.
"Organizations 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. In the current market, hyperscale cloud providers are driving the cloud agenda," said Sid Nag, a vice president and analyst at Gartner.
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.
Gartner predicts that by 2026, as much as 75% 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 in the statement. He further asserted that many of these technologies also help businesses interact better with their customers in real time, for example with generative AI-powered chatbots, and are reliant upon cloud infrastructure and platform services to meet growing demands for compute and storage power.