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Gartner projects global public cloud spending to grow to $679 billion by 2024

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public cloud spending

Gartner anticipates a remarkable surge in worldwide end-user spending on public cloud services, projecting a substantial 20.4% growth to reach $678.8 billion in 2024. This significant uptick, compared to the $563.6 billion recorded in 2023, underscores the escalating indispensability of cloud technology in the present business landscapes.

Cloud models are becoming increasingly influenced by business outcomes. As per experts at Gartner, this departure from conventional methodologies reflects the evolving relationship between cloud technology and business strategy.

Infrastructure-as-a-service (IaaS) is expected to see the highest end-user spending growth in 2024, projected at $182.2 billion, up by 26.6%. Platform-as-a-service (PaaS) follows closely, increasing by 21.5% and reaching $176.5 billion.

The spending on software-as-a-service (SaaS) is expected to grow by 18.9% to $243.9 billion, whereas business process-as-a-service (BPaaS) will see a growth of 10%.

GenAI – one of the major factors driving public cloud spending

Generative AI

The deployment of generative AI (GenAI) services prompts organizations to turn to public cloud platforms due to the scale of infrastructure needed. Gartner emphasizes that successful adoption will require cloud providers to address non-technical concerns such as cost, economics, sovereignty, privacy, and sustainability. Hyperscalers that effectively cater to these needs stand to tap into a burgeoning revenue stream as GenAI adoption continues to rise.

Industry cloud platforms

Another noteworthy trend influencing cloud spending is the increasing prominence of industry cloud platforms. These platforms, integrating SaaS, PaaS, and IaaS services, offer comprehensive solutions with adaptable capabilities that cater to industry-specific outcomes. Gartner predicts that by 2027, over 70% of enterprises will leverage industry cloud platforms to expedite their business initiatives, a significant leap from the less than 15% recorded in 2023.

GenAI adoption is identified as a key driver supporting the growth of industry cloud platforms. Public cloud providers, by aligning with approaches applied to industry clouds, sovereign clouds, and distributed clouds, position themselves as integral partners in the responsible and customized adoption of GenAI.

The pivotal role of cloud providers in steering the future of digital innovation and enterprise success becomes more evident as businesses are relying on cloud technology to shape their outcomes.

Source: Gartner

Featured image credit: Image by macrovector on Freepik

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