Spending on public cloud services is forecast to grow 20.4 percent to $494.7 billion in 2022 and nearly $600 billion in 2023 from $410.9 billion in 2021, according to Gartner report.
“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,” said Sid Nag, research vice president at Gartner.
The annual growth will be 30.6 percent in Infrastructure-as-a-service (IaaS), 26.6 percent in desktop-as-a-service (DaaS) and 26.1 percent in platform-as-a-service (PaaS).
Spending in PaaS will be $109.6 billion, while spending in SaaS will be $176.6 billion in 2022.
The hybrid work is prompting enterprises 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, Gartner said in a news statement.
Meanwhile, spending on compute and storage for cloud infrastructure, including dedicated and shared environments, increased 13.5 percent in the fourth quarter of 2021 to $21.1 billion and 8.8 percent to $73.9 billion in 2021, according to the latest IDC report on Cloud infrastructure market.