Global cloud spending expected to jump 21.7% as IaaS leads the way
Global end-user spending on public cloud services is forecast to grow 21.7% to total $597.3 billion in 2023, up from $491 billion in 2022, according to analyst firm Gartner.
While all segments of the cloud market are expected to see spending growth in 2023, infrastructure-as-a-service (IaaS) spending is forecast to experience the highest rise, increasing by 30.9%, followed by platform-as-a-service (PaaS) at 24.1%.
While software-as-a-service (SaaS) spending is projected to grow at a slower rate, 17.9%, it will total $197 billion in 2023 and remain\s the largest segment of the cloud market by total end-user spending.
“Organizations today view cloud as a highly strategic platform for digital transformation, which is requiring cloud providers to offer more sophisticated capabilities as the competition for digital services heats up,” said Sid Nag, a vice president and analyst at Gartner, in the company's report. He added that in the current market, hyperscale cloud providers are driving the cloud agenda.