Gartner: Public Cloud End-User Spending to Reach Nearly $500Bn in 2022

According to Gartner’s latest prediction, global end-user expenditure on public cloud services would climb 20.4 percent to $494.7 billion in 2022, up from $410.9 billion in 2021. End-user spending is estimated to hit approximately $600 billion by 2023.

Photo Sid Nag, Research VP at Gartner
“IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys,” said Sid Nag, Research VP at Gartner.

Infrastructure-as-a-Service (IaaS) is expected to increase at the fastest rate of 30.6 percent in 2022, followed by Desktop-as-a-Service (DaaS) at 26.6 percent and Platform-as-a-Service (PaaS) at 26.1 percent.

Because of the new reality of hybrid work, firms are shifting away from conventional client computing solutions like desktops and other physical in-office equipment and toward DaaS, which is expected to reach $2.6 billion in 2022, according to Gartner’s latest study. PaaS investment has increased to $109.6 billion due to end-user demand for cloud-native features.

“Cloud is the powerhouse that drives today’s digital organizations,” said Sid Nag, Research Vice President at Gartner. “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.”

IaaS, dbPaaS, Network-as-a-Service

“Cloud native capabilities such as containerization, database Platform-as-a-Service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditized compute such as IaaS or Network-as-a-Service,” added Mr. Nag. “As a result, they are generally more expensive which is fueling spending growth.”

SaaS is the most popular public cloud service, with end-user spending expected to reach $176.6 billion in 2022. As organizations adopt different routes to market with SaaS, such as through cloud marketplaces, and continue to break up big, monolithic applications into composable bits for more efficient DevOps operations, Gartner forecasts consistent growth in this area.

Hyperscale edge computing and Secure Access Service Edge (SASE), two emerging cloud computing technologies, are disrupting adjacent businesses and building new product categories, generating new income streams for public cloud providers, according to Gartner.

“Driven by maturation of core cloud services, the focus of differentiation is gradually shifting to capabilities that can disrupt digital businesses and operations in enterprises directly,” added Mr. Nag. “Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty.”