Public Cloud Spending to Hit $600B in 2023: Forecast

Gartner released a forecast for the global public cloud market. Analysts predict global public cloud revenues will grow 20.7% to $591.8 billion in 2023.

Analysts note that inflation and macroeconomic conditions have a two-fold impact on the demand for cloud services. On the one hand, cloud technology attracts users because of flexibility, elasticity and scalability, which helps maintain business growth in difficult conditions. However, given the reduction of the IT budget in general, the purchase of cloud technology is also decreasing, as in most organizations it is still the largest portion of IT spending.

gartner report

The Infrastructure-as-a-service (IaaS) segment is the fastest growing among cloud service types. It will grow by 29.8% in 2023. IaaS is in demand since companies continue to move their systems to the cloud to optimize costs and minimize risk. The growth of the Platform-as-a-Service (PaaS) and Software-as-a -Service (SaaS) segments is more severely hampered by inflation, as companies lack qualified professionals to develop SaaS programs, but cannot hire them due to lack of money. Nevertheless, these segments will also grow – in 2023, they are expected to grow by 23.2% and 16.8%, respectively.

Global public cloud spending to reach nearly $600 billion in 2023