According to a recent Gartner analysis, end-user expenditure on public cloud services is predicted to increase by 21.7% to $597.3 billion in 2023, up from $491 billion in 2022.<\/p>\n
Although all segments of the cloud market are expected to grow in spending in 2023, infrastructure-as-a-service (IaaS) is expected to grow the most (30.9%), followed by platform-as-a-service (PaaS) at 24.1%, with software-as-a-service (SaaS) remaining the largest segment by total end-user spending, totaling $197 billion in 2023.<\/p>\n
The cloud is increasingly considered as a critical platform for digital transformation, with cloud providers anticipated to offer more complex capabilities in response to competition for digital services, according to the research.<\/p>\n
According to Sid Nag, a Gartner vice president and analyst, hyperscale cloud providers are pushing the cloud agenda in the present market due to new technologies such as generative AI, Web3, and the metaverse.<\/p>\n
Nag said that emergent technologies, particularly those related to user experience, such as generative AI-powered chatbots, will drive the next phase of IaaS.<\/p>\n
Gartner forecasted in another analysis published in January that by 2025, 30% of outbound marketing communications from major firms will be synthetically created, up from less than 2% in 2022. Nag argued that the cloud is the ideal answer and platform for this change, with cloud hyperscalers playing a vital role in the generative AI race.<\/p>\n