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Public cloud growing over 20% annually

Worldwide end-user spending on public cloud services is forecast to grow 20.7% to total $591.8 billion in 2023, up from $490.3 billion in 2022, according to the latest forecast from Gartner, Inc. This is higher than the 18.8% growth forecast for 2022.

Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2023 at 29.8%. Gartner thinks that the efforts to move core IT systems and infrastructure to the cloud will even accelerate in the coming years.

On the other hand, it sees a lower growth for Platform-as-a-service (PaaS) and especially Software-as-a-Service (SaaS) offerings. That's probably because PaaS and SaaS are covering more specific business cases that can be budgeted more conservatively or even postponed in turbulent times and during soaring inflation.

Another cause for lower growth of these higher-end services are staffing challenges, as higher-wage and more skilled staff are required to develop modern SaaS applications or run complex PaaS services.

Nevertheless, the key takeaway seems to be that all public cloud segments will still see continued growth and the global move to the cloud continues relentlessly.


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