Gartner: ‘Cloud Migration Is Not Stopping’ In 2023; $592B Predicted In Public Cloud Spending
Worldwide spending on public cloud services will reach $592 billion next year, Gartner predicts. Here are the key cloud segments where end users will spend their public cloud money in 2023.
As cloud sales continue to soar for market leaders Amazon Web Services, Microsoft Azure and Google Cloud in 2022, Gartner is expecting total worldwide end-user spending on public cloud services will reach a record $592 billion next year.
“Cloud migration is not stopping,” said Sid Nag, vice president and analyst at Gartner, in a statement.
The $592 billion in public cloud services spending would represent a 21 percent increase in annual growth compared with $490 billion in 2022.
“Current inflationary pressures and macroeconomic conditions are having a push-and-pull effect on cloud spending,” Nag said. “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.”
$195 Billion On Cloud SaaS
The IT research firm is expecting customers to spend the most on cloud application Software as a Service in 2023. Gartner is projecting cloud SaaS spending to reach $195 billion next year, up 17 percent compared with 2022.
Gartner estimates SaaS will see “significant impacts” from inflation due to staffing challenges and the focus on margin protection.
“Higher-wage and more skilled staff are required to develop modern SaaS applications, so organizations will be challenged as hiring is reduced to control costs,” said Nag.