Gartner announced its expectation on worldwide cloud spending. According to the announcement, spending will grow 18.4% in 2021 to a total of $304.9 billion, up from $257.5 billion in 2020. Gartner also said the proportion of IT spending that is shifting to the cloud will accelerate in the aftermath of the pandemic, with the cloud projected to make up 14.2% of the total global enterprise IT spending market in 2024, up from 9.1% in 2020.
$304.9 billion in 2021
SaaS remains the largest market segment and is forecast to grow to $117.7 billion in 2021. PaaS is anticipated to grow by a higher margin at 26.6%. The increase of PaaS is driven by the need for remote workers to have access to high-performing, content-rich and scalable infrastructure to perform their duties, which largely comes in the form of modernized and cloud-native applications.
Gartner expects growth in the public cloud to be sustained through 2024, as enterprises will increase their investments in mobility, collaboration, and other remote working technologies and infrastructure. The rising popularity of cloud service providers that partner with telecommunication companies to extend the reach into the edge and support a hybrid workforce may also lead to further market growth, according to Gartner. Sid Nag, Vice President, Cloud Services & Technologies, Gartner, said,
“The pandemic validated 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.”