Worldwide end-user spending on public cloud services is projected to grow 21.7% to total $597.3 billion in 2023, up from $491 billion in 2022, according to the latest Gartner forecast. Read more here. GartnerIO GartnerHT
BPaaS=business process as a service; IaaS=infrastructure as a service; PaaS=platform as a service; SaaS=software as a serviceGartner predicts that by 2026, 75% of organizations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform., digital and business outcomes and the virtual-first world,” said Nag.
While cloud infrastructure and platform services are driving the highest spending growth, SaaS remains the largest segment of the cloud market by end-user spending. SaaS spending is projected to grow 17.9% to total $197 billion in 2023. “The technology substrate of cloud computing is firmly dominated by the hyperscalers, but leadership of the business application layer is more fragmented,” said Nag. “Providers are facing demands to redesign SaaS offerings for increased productivity, leveraging cloud-native capabilities, embedded AI and composability – particularly as budgets are increasingly driven and owned by
. This change will ignite a wave of innovation and replacement in the cloud platform and application markets.”
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