The opportunities and benefits from scalable cloud computing is expected to boost worldwide end-user spending for public cloud services by 18.4% in 2021 from $257.5 billion in 2020 to $304.9 billion in 2021.
According to Sid Nag, Research Vice President at Gartner, “The ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity is providing the impetus for organisations to rapidly accelerate their digital business transformation plans. The increased use of public cloud services has reinforced cloud adoption to be the ‘new normal,’ now more than ever.”
Table 1. Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)
|
|
2019 |
2020 |
2021 |
2022 |
|
Cloud Business Process Services (BPaaS) |
45,212 |
44,741 |
47,521 |
50,336 |
|
Cloud Application Infrastructure Services (PaaS) |
37,512 |
43,823 |
55,486 |
68,964 |
|
Cloud Application Services (SaaS) |
102,064 |
101,480 |
117,773 |
138,261 |
|
Cloud Management and Security Services |
12,836 |
14,880 |
17,001 |
19,934 |
|
Cloud System Infrastructure Services (IaaS) |
44,457 |
51,421 |
65,264 |
82,225 |
|
Desktop as a Service (DaaS) |
616 |
1,204 |
1,945 |
2,542 |
|
Total Market |
242,696 |
257,549 |
304,990 |
362,263 |
BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.
Source: Gartner (November 2020)
Post COVID-19, it is expected that the proportion of IT spending dedicated to cloud will escalate — making up 14.2% of the total globe enterprise IT spending market in 2024, an increase from 9.1% in 2020.
Despite software as a service (SaaS) remaining as the largest market segment and forecasted to grow to $117.7 billion in 2021, application infrastructure services (PaaS) is estimated to grow by a greater margin at 26.6% (see Table 1). This increase in demand could be attributed to the need for remote workers to have access to high performing, content-rich and scalable infrastructure to perform their duties, which mostly comes from modernized and cloud-native applications.
“The COVID-19 pandemic forced organisations to quickly focus on three priorities: preserve cash and optimise IT costs, support and secure a remote workforce, and ensure resiliency” said Nag. “Investing in cloud became a convenient means to address all three of these needs.”
