Gartner: Top 5 Cloud SaaS, IaaS And Services In $600B Market
CRN breaks down how much worldwide end-user cloud spending can be expected in 2023 from cloud SaaS, IaaS, PaaS and more based on new data from IT research firm Gartner.
Gartner is predicting that total worldwide spending on public cloud services will reach nearly $600 billion in 2023, representing an annual increase of 22 percent, as demand for cloud application and infrastructure services takes off.
By 2026, 75 percent of organizations will adopt a digital transformation model predicated on the cloud as their fundamental underlying platform, Gartner predicted, with hyperscalers Amazon Web Services, Microsoft and Google leading the way.
“Hyperscale cloud providers are driving the cloud agenda,” said Sid Nag, vice president at Gartner, in a statement. “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.”
[Related: Gartner: Top 5 Markets In $4.6 Trillion Tech Industry For 2023, 2024]
Public Cloud Services Markets
End-user spending on public cloud services reached $491 billion in 2022. Gartner expects this market to increase to $597 billion this year, then grow to $725 billion in 2024.
The five largest markets in end-user spending on public cloud computing services are: Cloud Management and Security Services; Cloud Business Process Services (BPaaS); Cloud System Infrastructure Services (IaaS); Cloud Application Infrastructure Services (PaaS); and Cloud Application Services, which Gartner dubs as SaaS.
Cloud computing services will also have a large impact on the highly popular generative AI movement being led by cloud market-share leaders, such as Microsoft-backed ChatGPT.
“Generative AI is supported by large language models (LLMs), which require powerful and highly scalable computing capabilities to process data in real time,” said Gartner’s Nag. “Cloud offers the perfect solution and platform. It is no coincidence that the key players in the generative AI race are cloud hyperscalers.”
IT research firm Gartner breaks down the financial numbers for the five hottest public cloud services markets that are driving cloud sales: SaaS, IaaS, PaaS, BPaaS, and cloud management and security.