Gartner: 2021 global public cloud end-user spend to grow 18%
A recent report conducted by Gartner, identifies the current global spending on public cloud services in 2020 totals US$257.5bn. This figure is expected to increase by 18.4% in 2021 to US$304.9bn.
“The pandemic validated the cloud's value proposition. The ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity is providing the impetus for organizations 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,” commented Sid Nag, research vice president at Gartner.
Following the impact of COVID-19, Gartner is witnessing a shift in the proportion of IT spending when it comes to cloud technology. Up from 9.1% in 2020, Cloud is projected to make up 14% of the total global enterprise IT spending market in 2024.
Other key findings from the research included:
- Software as a service (SaaS) remains the largest market, forecast to grow to US$117.7bn in 2021, however, application infrastructure services (PaaS) is expected to have a much higher growth margin (26.6%)
- Almost 70% of organisations using cloud services currently, plan to increase their cloud spending following the disruption caused by COVID-19
- With increased investment in mobility, collaboration and remote working technologies/infrastructure, Gartner expects public cloud to sustain its growth through to 2024
“The COVID-19 pandemic forced organizations to quickly focus on three priorities: preserve cash and optimize IT costs, support and secure a remote workforce, and ensure resiliency. Investing in cloud became a convenient means to address all three of these needs,” added Nag.
“As think more strategically about how to lay the foundations to support a return to growth, it is clear that the move to digital and associated services will play a big role for organizations in the future. Cloud adoption therefore becomes a significant means to stay ahead in a post-COVID-19 world focused on agility and digital touchpoints,” Nag concluded.