Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total US$494.7 billion.
This is up from $410.9 billion in 2021, according to the latest forecast from Gartner. In 2023, end-user spending is expected to reach nearly US$600 billion.
"Cloud is the powerhouse that drives today's digital organisations," says Gartner research vice president, Sid Nag.
"CIOs are beyond the era of the 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."
Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1%.
Gartner says the new reality of hybrid work is prompting organisations to move away from powering their workforce with traditional client computing solutions, such as desktops and other physical in-office tools, and toward DaaS, which is driving spending to reach $2.6 billion in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6 billion in spending.
"Cloud-native capabilities such as containerisation, database platform-as-a-service (dbPaaS) and AI and machine learning contain richer features than commoditised compute such as IaaS or network-as-a-service," says Nag. "As a result, they are generally more expensive, fuelling spending growth."
He says SaaS (Software-as-a-Service) remains the largest public cloud services market segment, forecasted to reach $176.6 billion in end-user spending in 2022. Gartner expects steady velocity within this segment as enterprises take multiple routes to market with SaaS.
Emerging technologies in cloud computing, such as hyperscale edge computing and secure access service edge (SASE), are disrupting adjacent markets and forming new product categories, creating additional revenue streams for public cloud providers.
"Driven by the maturation of c ..
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