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Gartner forecasts worldwide public cloud end-user spending to reach nearly US$500 billion in 2022

Gartner forecasts worldwide public cloud end-user spending to reach nearly US$500 billion in 2022

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Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total US$494.7 billion, up from US$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 organizations,” said Sid Nag, Research Vice President at Gartner. “CIOs are beyond the era of 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%.

The new reality of hybrid work is prompting organizations 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 US$2.6 billion in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to US$109.6 billion in spending.

“Cloud native capabilities such as containerization, Database Platform-as-a-Service (dbPaaS) and AI/Machine Learning contain richer features than commoditized compute such as IaaS or Network-as-a-Service,” said Nag. “As a result, they are generally more expensive which is fueling spending growth.” 

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