Global end-user spending on public cloud services is expected to reach $597.3 billion in 2023, marking a significant growth of 21.7% from the $491 billion recorded in 2022. Meanwhile, expenditure on the similar services in India could jump by 26.3% to total $10.1 billion this year, a latest report by Gartner revealed.
As per the report, cloud computing is driving the upcoming stage of digital business, as companies strive for innovation through technologies such as generative artificial intelligence (AI), Web3, and the metaverse.
Gartner also predicted a growth across all segments of the cloud market by the end of 2023. According to the report, the most significant increase in the end-user spending is expected in the Infrastructure-as-a-Service (IaaS) segment at 30.9% globally followed by Platform-as-a-Service (PaaS) with a projected growth rate of 24.1%.
As India's technology adoption landscape is undergoing a significant transformation, the local spending on IaaS is expected to surge by 33.1% this year.
Sid Nag, Vice President Analyst at Gartner, said, “Hyperscale cloud providers are driving the cloud agenda. Organisations 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.”
The utilisation of generative AI technology heavily relies on large language models (LLMs) that demand robust and scalable computing capabilities for real-time data processing. In this regard, cloud computing provides an ideal solution and platform, according to Nag.
The report predicts that by 2026, 75% of organisations globally will embrace a digital transformation model that is based on the cloud as the primary underlying platform.
The increasing need for businesses to engage with their customers in real-time has led to the emergence of innovative technologies like chatbots and digital twins. These technologies rely heavily on cloud infrastructure and platform services to cater to the growing demand for storage and computing power.
Software-as-a-Service (SaaS) will continue to dominate the global cloud market in terms of end-user spending. The projected growth of SaaS spending is expected to reach $197 billion in 2023, representing a significant increase of 17.9%.