Due to the surge in demand for infrastructure-as-a-service (IaaS), the worldwide public cloud spending is projected to soar year over year at double-digit rates.
The IT analyst, Gartner has predicted that spending on public cloud services will hit $494.7 billion in 2022, which represents a 20.4% increase year-over-year (YoY) when compared to last years’ figure of about 410.9 billion dollars.
The future seems to be a cloud-enabled one. The report also estimates that by 2023, the end-users are predicted to invest over $600 billion in public cloud services by 2023.
“Cloud is the powerhouse that drives today’s digital organizations,” said Sid Nag, Research Vice President at Gartner. “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.”
IaaS, DaaS leads the public cloud market
The demand for Infrastructure as a Service (IaaS) is set to be the biggest, at 30.6%, followed by Desktop as a Service (DaaS) at around 27%, and Platform as a Service (PaaS) at 26.1%. The shift towards hybrid work culture in organizations has moved them from powering their workforce with traditional client computing solutions towads DaaS – which is driving spending to reach 2.6 billion dollars in 2022. The end-user demand for cloud-native capabilities accounts for PaaS, has grown to nearly $110 billion in spending.
“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,” said Nag. “As a result, they are generally more expensive which is fueling spending growth.”
SaaS has set itself again as the largest public cloud services market and is expected to reach nearly $177 billion in 2022. Gartner expects the growth as enterprises take multiple routes to market using SaaS, for example via cloud marketplaces, and continue breaking up larger monolithic applications into composable parts to manage DevOps processes efficiently.
New emerging technologies in cloud computing, including hyperscale edge and SASE (secure access service edge), 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,” said Nag. “Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty.”