Gartner: Worldwide Public Cloud End-User Spending Will Increase by 23% in 2021

Global end-user expenditure on public cloud services would rise 23.1 percent to $332.3 billion in 2021, up from $270 billion in 2020, according to Gartner’s latest forecast. The events of last year helped CIOs to overcome any reluctance of transferring mission critical workloads from on-premises to the cloud, although there would be a loss of interest for keeping all of their IT infrastructure on-premises or in 3rd party data centers even if the pandemic didn’t happen.

Demand for products that enable or supply public cloud services is skyrocketing, according to Gartner. The largest market category, Software-as-a-Service (SaaS), is expected to reach $122.6 billion in 2021, as demand for composable apps necessitates a different sort of SaaS experience.

Demand for IaaS and DaaS

Photo Sid Nag, Research Vice President at Gartner
“The events of last year allowed CIOs to overcome any reluctance of moving mission critical workloads from on-premises to the cloud,” said Sid Nag, Research Vice President at Gartner.

As CIOs face continued pressures to scale infrastructure that supports moving complex workloads to the cloud and the demands of a hybrid workforce, Infrastructure-as-a-Service (IaaS) and Desktop-as-a-Service (DaaS) will see the highest growth in 2021, with 38.5 percent and 67.7 percent, respectively.

“The events of last year allowed CIOs to overcome any reluctance of moving mission critical workloads from on-premises to the cloud,” said Sid Nag, Research Vice President at Gartner. “Even absent the pandemic there would still be a loss of appetite for data centers.

“Emerging technologies such as containerization, virtualization and edge computing are becoming more mainstream and driving additional cloud spending. Simply put, the pandemic served as a multiplier for CIOs’ interest in the cloud.”

“It’s important to note that the usage and adoption of cloud that served enterprises well during the ongoing crisis will not look the same in the coming years,” added Mr. Nag. “It will further evolve from serving pedestrian use cases such as infrastructure and application migration, to those that combine cloud with technologies such as artificial intelligence, the Internet of Things, 5G and more. In other words, cloud will serve as the glue between many other technologies that CIOs want to use more of, allowing them to leapfrog into the next century as they address more complex and emerging use cases. It will be a disruptive market, to say the least.”

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