Get All Access for $5/mo

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

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

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.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.