Infrastructure, Desktop and Platform as a Service segments are expected to achieve the highest growth within the Public Cloud market this year
According to the most recent survey by the Gartner, Inc., a world leader in enterprise research and advice, worldwide end-user spending on Public Cloud services is expected to grow by 20.4% in 2022 to total US$ 494.7 billion – well up from US$ 410.9 billion in 2021. By 2023, analysts predict that this segment could move nearly US$ 600 billion.
“The Cloud is the power that powers today's digital organizations,” says Sid Nag, Vice President of Research at Gartner. “Chief Information Officers (CIOs) have left the irrational procurement of cloud services in the past and are now being much more careful in choosing Public Cloud providers to drive specific and desired business outcomes in their organizations digital transformation journey. .”
Research by analysts Gartner indicates that the Infrastructure as a Service (IaaS) segment is expected to experience the highest spend growth in 2022, up 30.6%. Following are the Desktop as a Service (DaaS) offerings, with 26.6% growth, and Platform as a Service (PaaS), which should reach 26.1% growth. The new reality of hybrid work is leading organizations to move away from empowering their workforce with traditional computing solutions, with desktops and other physical tools in the office, towards the DaaS format, a market that is expected to reach US$ 2.6 billion in 2022. Demand for Cloud-native resources for end users via PaaS causes this segment to drive US$ 109.6 billion in spending this year.
“Cloud-native features such as containerization, database platform as a service (dbPaaS) and Machine Learning (ML – Machine Learning) / Artificial Intelligence (AI) contain richer features than commoditized computing, such as IaaS or network as a service,” says Nag. “As a result, they are often more expensive, which is fueling spending growth.”
Software as a Service (SaaS) offering remains the largest segment of the Public Cloud services market, forecast to reach US$ 176.6 billion in end-user spend in 2022. Gartner expects steady velocity in this segment as that organizations take multiple routes to market, with SaaS, for example, and continue to break their legacy, monolithic program structures into pieces that can be composed for more efficient DevOps processes.
Emerging Cloud Computing Technologies such as Hyperscale Edge Computing and Secure Edge Access Services (SASE – Secure Access Service Edge), are disrupting adjacent markets and forming new product categories, creating additional revenue streams for Public Cloud providers.
“Driven by the maturation of leading cloud services, the focus of differentiation is gradually shifting to capabilities that can truly disrupt business and digital operations in organizations,” says Nag. “Public Cloud services have become so integral that today's providers are forced to face social and political challenges such as sustainability and data sovereignty.
“IT leaders who see the Cloud as an enabler rather than an end state will be more successful in their digital transformation journeys,” says the analyst. “Organizations that combine the Cloud with other adjacent emerging technologies will do even better.”
