A challenging macroeconomic situation may not stop companies from migrating to the cloud, with new Gartner research claiming that end-user spending on public cloud services will grow 20.7% to a total of $591 by 2023. 8 billion.
This represents a pretty big jump from the $490.3 billion in cloud spending the analyst firm forecasts for all of 2022, and is also ahead of the 18.8% growth it forecasts for 2022.
While all cloud computing segments are expected to see some growth in 2023, Infrastructure-as-a-service (IaaS) is expected to experience the highest end-user spending increase in 2023 of all industries surveyed, up 29.8% .
What drives growth?
Commenting on the news, Sid Nag, vice president analyst at Gartner, said: “Once applications and workloads are moved to the cloud, they generally stay there, and subscription models ensure that spend is kept over the life of the contract and most likely to be continued well beyond.” .
In addition, Gartner predicts that platform-as-a-service (PaaS) and software-as-a-service (SaaS) will also perform well, growing by 23.2% and 16.8% respectively in 2023, due to factors such as “personnel challenges” and a greater focus on margin protection
“Current inflationary pressures and macroeconomic conditions are pushing and pulling cloud spending,” said Sid Nag. “Cloud computing will remain a stronghold of security and innovation, supporting growth in uncertain times thanks to its flexible, elastic and scalable nature.”
The data comes despite the fact that growth at many of the world’s largest cloud companies may be slowing.
Amazon Web Services (AWS), which currently controls most of the global cloud hosting (opens in new tab) market, reported third-quarter revenue growth of 27.5% in the third quarter, the slowest year-over-year increase since the company began reporting its finances separately in 2014.
Despite its resilience, the cloud computing industry is not immune to broader economic problems.
Smaller data centers in the UK and Ireland have seen their margins plummet as a result of the energy crisis, with research by Aggreko showing some sites’ utility bills increasing by as much as 50% over the past three years.
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