This year, global end-users will spend $494.7 billion on public cloud services, a fifth more year-on-year. SaaS remains the most important branch, but infrastructure and virtual workplaces are rising, Gartner says.
Last year it was $410.9 billion; this year, it will be 20.4 percent and next year, Gartner expects that to rise to more than 600 billion dollars.
Cloud spending continues to grow because companies are doing more than just bringing their on-premise infrastructure to an AWS or Azure. “The cloud is the machine that drives digital organizations,” said Sid Nag, research vice president at Gartner. “CIOs (…) are thoughtful in their choice of public cloud providers for specifically desired business and technology outcomes in their digital transformation.”
Gartner breaks public cloud spending into six services: Business Processes (BPaaS), Application Infrastructure (PaaS), Applications (SaaS), Management and Security, Infrastructure (IaaS), and Desktop (DaaS). The largest category remains Saas, with $ 152 billion. According to Gartner, this is because software as a service offers a variety of ways to go to market. For example, think of cloud marketplaces or the replacement of classic software by SaaS, whether or not divided into pieces.
The biggest growth comes from Iaas, which is growing 30.6 percent year on year. But DaaS and PaaS are also growing by 26.6 and 26.1 percent, respectively, although it should be noted that Desktop as a Service is the smallest segment in the public cloud with only $ 2.6 billion.
Finally, Gartner notes that things like containerization, databases as a service, AI or machine learning are getting more possibilities in the cloud. Unfortunately, this means that those services are relatively more expensive than other things, which also means that the total expenditure on the public cloud increases.