Gartner has released its latest forecast for the evolving public cloud landscape in 2023.
According to the analyst, worldwide end-user spending on services within the public cloud environment will grow around 20.7 percent in 2023. This will increase the value of the industry from $490.3 billion in 2022, to a potential $591.8 billion in 2023.
According to Sid Nag, Vice President Analyst at Gartner, rising inflationary pressures are combining with complex macroeconomic conditions to generate new demand for cloud spending.
For many users, cloud computing represents a safe and innovative landscape for continued growth and functionality during “uncertain times”.
The scalable, elastic, and agile nature of the cloud makes it ideal for those hoping to take advantage of rapidly changing trends and new technologies. However, Gartner notes that spending could fail to rise to predicted standards if IT budgets are affected by financial issues in the coming year.
The Consistent Migration to Cloud Technology
Nag notes that cloud migration is still occurring at an incredible pace, inspired by a rapid shift in computing practices in the last couple of years.
In particular, “Infrastructure as a Service”, or “IaaS” is expected to see the highest increase in end-user spending during 2023. This particular segment is set to grow by around 29.8 percent.
Nag believes IaaS will be a crucial spending area for businesses as they accelerate their digital transformation and modernisation initiatives, with a focus on reducing costs and risk.
Transitioning operations into the cloud can also help organisations to reduce common capital expenditures, thanks to a subscription-based pricing structure.
Gartner also expects PaaS and Software as a Service being impacted by margin protection and staffing challenges.