According to a recent Gartner analysis, end-user expenditure on public cloud services is predicted to increase by 21.7% to $597.3 billion in 2023, up from $491 billion in 2022.
Although all segments of the cloud market are expected to grow in spending in 2023, infrastructure-as-a-service (IaaS) is expected to grow the most (30.9%), followed by platform-as-a-service (PaaS) at 24.1%, with software-as-a-service (SaaS) remaining the largest segment by total end-user spending, totaling $197 billion in 2023.
The cloud is increasingly considered as a critical platform for digital transformation, with cloud providers anticipated to offer more complex capabilities in response to competition for digital services, according to the research.
According to Sid Nag, a Gartner vice president and analyst, hyperscale cloud providers are pushing the cloud agenda in the present market due to new technologies such as generative AI, Web3, and the metaverse.
Nag said that emergent technologies, particularly those related to user experience, such as generative AI-powered chatbots, will drive the next phase of IaaS.
Gartner forecasted in another analysis published in January that by 2025, 30% of outbound marketing communications from major firms will be synthetically created, up from less than 2% in 2022. Nag argued that the cloud is the ideal answer and platform for this change, with cloud hyperscalers playing a vital role in the generative AI race.
The sources for this piece include an article in ComputerWorld.
