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End-user spending on cloud computing services around the world is expected to grow at a rate of 20.7% to reach the threshold of $591.8 billion by 2023, an increase from the levels of 2022 at about $490.3 billion, according to the latest market estimates issued by Gartner. for research. It is worth noting that this growth rate exceeds expectations that predicted a growth of up to 18.8% in 2022.
“Current inflation pressures and present-day macroeconomic conditions are causing an ebb and flow of spending on cloud computing,” said Syed Nag, vice president of research at Gartner. Cloud computing will continue to emphasize its position as a bastion of safety and innovation, and provide support for growth during a state of uncertainty in markets, by taking advantage of the nature of these services that are flexible, responsive and scalable.”
“However, institutions can only spend what they have,” he added. Spending on cloud computing may witness a decline if budgets allocated to information technology are reduced, knowing that cloud computing maintains the largest share of spending on information technology and the largest share of budget growth.”
The infrastructure-as-a-service (IaaS) sector is expected to witness the highest growth rates for end user spending in 2023 at an average of 29.8%. Indeed, all sectors are expected to achieve growth during 2023.
“The process of moving toward cloud computing solutions is not stopping,” Nag noted. Infrastructure-as-a-service (IaaS) solutions will continue their natural growth, with the commercial sector accelerating the completion of IT development initiatives to reduce risks and improve costs. Moving operations to cloud computing helps reduce capital spending, by providing cash over the subscription period, which is a major advantage in an environment where cash liquidity can play a very important role to maintain operations.”
Gartner forecasts that infrastructure-as-a-service PaaS and software-as-a-service-SaaS solutions will see the biggest impact on inflation, due to employment challenges and a focus on securing profit margins. However, both sectors will continue to record growth rates, which Gartner expects to reach 23.2% for infrastructure-as-a-service (PaaS) solutions and 16.8% for software-as-SaaS.
Nag added, “The need to develop modern software-as-a-service SaaS applications requires skilled talent who also expect higher wages, which poses more challenges for companies struggling to hire as they strive to control costs. But given the efficiency of PaaS solutions in creating and automating SaaS application programming, the rate of PaaS usage will therefore rise.”
