A new Gartner study predicts that end-user expenditure on public cloud services will increase by 20.7%, reaching a total of $591.8 billion in 2023. This suggests that a difficult macroeconomic scenario is not stopping enterprises from migrating to the cloud.
This is much more than the 18.8% rise the analysis company predicted for 2022 and the $490.3 billion in cloud expenditure predicted for the whole year of 2022.
While it is estimated that all areas of cloud computing will expand in 2023, Infrastructure-as-a-service (IaaS) is predicted to witness the greatest rise in end-user expenditure of any industry examined, at 29.8 percent.
The key to growth is.
“Once apps and workloads migrate to the cloud, they typically remain there,” said Sid Nag, vice president analyst at Gartner, in response to the announcement. “Subscription models assure that expenditure will continue through the duration of the contract and most likely much beyond.” “.
Software as a service (SaaS) and platform as a service (PaaS) is expected to do well as well, with growth rates of 23.2% and 16.8% respectively in 2023, according to research firm Gartner. This is due to “staffing issues” and a greater emphasis on margin preservation.
There is a push and pull on cloud expenditure due to current inflationary pressures and macroeconomic constraints “said Sid Nag. The flexibility, elasticity, and scalability of the cloud will ensure that it remains a haven of security and innovation even as it helps to fuel economic expansion in times of political and economic unrest.
The findings appear amid signs that expansion at several of the world’s major cloud providers may be leveling down.
Third-quarter revenue growth for Amazon Web Services (AWS) was 27.5%, the company’s smallest year-over-year increase since it started reporting its finances separately in 2014. AWS presently owns the greatest share of worldwide cloud hosting(opens in new tab) industry.
When it comes to the economy as a whole, the cloud computing sector is no exception, despite its apparent resiliency.
With some locations seeing energy expenses climb by as much as 50% over the previous three years, the energy crisis has had a devastating effect on the profit margins of smaller data centers in the UK and Ireland.
