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IaaS, DaaS and PaaS to Witness Highest Spending Growth This Year

Mumbai, NFAPost: Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total $494.7 billion, up from $410.9 billion in 2021, according to the latest forecast from Gartner, Inc. In 2023, end-user spending is expected to reach nearly $600 billion.

Gartner Research Vice President Sid Nag said cloud is the powerhouse that drives today’s digital organizations.

“CIOs are beyond the era of irrational exuberance of procuring cloud services and are being thoughtful in their choice of public cloud providers to drive specific, desired business and technology outcomes in their digital transformation journey,” said Gartner Research Vice President Sid Nag.

Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1% (see Table 1).

The new reality of hybrid work is prompting organisations to move away from powering their workforce with traditional client computing solutions, such as desktops and other physical in-office tools, and toward DaaS, which is driving spending to reach $2.6 billion in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6 billion in spending.

Gartner Research Vice President Sid Nag said cloud-native capabilities such as containerisation, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditised compute such as IaaS or network-as-a-service.

“As a result, they are generally more expensive which is fueling spending growth,” said Gartner Research Vice President Sid Nag.

SaaS remains the largest public cloud services market segment, forecasted to reach $176.6 billion in end-user spending in 2022. Gartner expects steady velocity within this segment as enterprises take multiple routes to market with SaaS, for example via cloud marketplaces, and continue to break up larger, monolithic applications into composable parts for more efficient DevOps processes.

In India, end-user spending on public cloud will total $7.5 billion in 2022, growing 29.3% from 2021. Cloud system infrastructure services (IaaS) is forecast to record the highest growth in 2022 (39.4%), followed by cloud application infrastructure services (PaaS). IaaS will also be the highest spending vertical for end-users in India in 2022 (See Table 2).

Emerging technologies in cloud computing such as hyperscale edge computing and secure access service edge (SASE) are disrupting adjacent markets and forming new product categories, creating additional revenue streams for public cloud providers.

Driven by maturation of core cloud services, Gartner Research Vice President Sid Nag said the focus of differentiation is gradually shifting to capabilities that can disrupt digital businesses and operations in enterprises directly.

“Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty,” said Gartner Research Vice President Sid Nag.

Gartner Research Vice President Sid Nag said IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys.

“The organizations combining cloud with other adjacent, emerging technologies will fare even better,” said Gartner Research Vice President Sid Nag.

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