Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach $679 Billion in 2024
Worldwide end-user spending on public cloud services is forecast to grow
20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023,
according to the latest forecast from Gartner, Inc.
“Cloud has become essentially indispensable,” said Sid Nag,
Vice President Analyst at Gartner. “However, that doesn’t mean cloud innovation
can stop or even slow. The tables are turning for cloud providers as cloud
models no longer drive business outcomes, but rather, business outcomes shape
cloud models.”
“For example, organizations deploying generative AI (GenAI) services will look to the public
cloud, given the scale of the infrastructure required,” said Nag. “However, to
deploy GenAI effectively, these organizations will require cloud providers to
address nontechnical issues related to cost, economics, sovereignty, privacy
and sustainability. Hyperscalers that support these needs will
be able to capture a brand-new revenue opportunity as GenAI adoption
grows.”
All segments of the cloud market are expected see growth in 2024.
Infrastructure-as-a-service (IaaS) is forecast to experience the highest
end-user spending growth in 2024 at 26.6%, followed by platform-as-a-service
(PaaS) at 21.5%.
Another key trend driving cloud spending is the continued rise of industry cloud platforms. Industry cloud platforms address
industry-relevant business outcomes by combining underlying
software-as-a-service (SaaS), PaaS and IaaS services into a whole-product
offering with composable capabilities. Gartner predicts that by 2027, more than
70% of enterprises will use industry cloud platforms to accelerate their business
initiatives, up from less than 15% in 2023.
“GenAI adoption will also support the growth in industry cloud
platforms,” said Nag. “GenAI models that are applicable across diverse industry
verticals might require significant customization, affecting scalability and
cost-effectiveness. Public cloud providers can position themselves as partners
in the responsible and tailored adoption of GenAI by building on the same
approaches applied to industry clouds, sovereign clouds and distributed
clouds.”
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