[ad_1]
Global end-user spending on public cloud services will grow 21.7% from $491 billion in 2022 to $597.3 billion in 2023, according to the latest forecast from leading management consulting firm Gartner.
Cloud computing is driving the next phase of digital business as organizations seek disruption by generating emerging technologies such as artificial intelligence (AI), Web3, and the metaverse.
“Hyperscale cloud providers are driving the cloud agenda,” said Sid Nag, vice president analyst at Gartner. “Today’s organizations view the cloud as a highly strategic platform for digital transformation, and as competition for digital services heats up, this requires cloud providers to deliver more sophisticated capabilities.”
generative artificial intelligence
“For example, generative AI is powered by large language models (LLMs), which require powerful and highly scalable computing power to process data in real time,” Nag added. “The cloud provides the perfect solution and platform. It’s no coincidence that the main players in the generative AI race are cloud hyperscalers.”
All segments of the cloud market are expected to experience growth in 2023. Infrastructure as a service (IaaS) is expected to experience the highest end-user spending growth in 2023 at 30.9%, followed by platform as a service (PaaS) at 24.1%.
Gartner predicts that by 2026, 75% of organizations will adopt a digital transformation model with a cloud-based underlying platform.
Customer Experience
“The next phase of IaaS growth will be driven by customer experience, digital and business outcomes, and the virtual first world,” Nag said. “Emerging technologies that help businesses engage with customers more closely and in real time, such as chatbots and digital twins, rely on cloud infrastructure and platform services to meet the growing demand for computing and storage capacity.”
While cloud infrastructure and platform services are driving the highest spending growth, SaaS remains the largest segment of the cloud market by end-user spending. SaaS spending is projected to grow 17.9 percent to $197 billion by 2023.
“The technical foundation of cloud computing is firmly in the hands of the hyperscalers, but leadership at the business application layer is more fragmented,” Nag said. “Vendors are faced with redesigning SaaS offerings to improve productivity, leverage cloud-native capabilities, embed AI and the need for composability—especially as budgets are increasingly driven and owned by business technologists. This change will unleash a wave of innovation and replacement in the cloud platform and application markets.” – – trade arab news agency
[ad_2]
Source link