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.”

[Related: Top 5 Cloud Market Share Leaders: AWS, Microsoft, Google In Q3 2022]

$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.