Forecasted annual growth expected to exceed 20%, driven by Generative Artificial Intelligence-enabled applications
O Gartner, a global leader in research and advice for businesses, announces that global end-user spending on Public Cloud services is expected to increase by 20.4%, totaling US$ 675.4 billion in 2024, compared to US$ 561 billion recorded in 2023. This growth is being driven by Generative Artificial Intelligence (GenAI) and the modernization of applications.
“The continued growth we expect to see in Public Cloud spending can largely be attributed to Artificial Intelligence because of the continued creation of general-purpose baseline models and the acceleration in the delivery of Generative Artificial Intelligence-enabled applications at scale,” he says sid nag, Vice President and Analyst at Gartner. “With this continued growth, we expect end-user spending on Public Cloud to surpass the US$1 trillion mark before the end of this decade.”
All segments of the Cloud market are expected to register growth in 2024. Infrastructure as a Service (IaaS) is projected to experience the greatest growth in end-user spending, with 25.6%, followed by Platform as a Service (PaaS), with 20. 6%.
Forecast of Global End-User Spending on Public Cloud Services – (In billions of dollars)
Source: Gartner (May 2024). Note: Totals may not match due to rounding
“Infrastructure as a Service continues at a robust growth rate that reflects the ongoing GenAI revolution,” says Nag. “The need to have infrastructure to perform Artificial Intelligence model training, inference and fine-tuning has only increased and will continue to grow exponentially, having a direct effect on the consumption of Infrastructure as a Service.”
While the infrastructure and cloud platform services drive the greatest growth in spending, Software as Service continues to be the largest segment of the Cloud market by end user spending. Software as a Service spending is projected to grow by 20%, totaling US$ 247.2 billion in 2024.
“Software as Service spending is driven by applications being modernized by independent vendors to work in a service-based consumption model,” says the Gartner analyst. “Companies continue to increase the use of A cloud for specific use cases such as Artificial Intelligence, Machine Learning (machine learning), Internet of Things (IoT – from Internet of Things, in English) and Big Data.”
Learn how to maximize the benefits of Cloud computing in the free Gartner e-book “Devising an Effective Cloud Strategy🇧🇷 Gartner customers can read more at “Forecast: Public Cloud Services, Worldwide, 2022-2028, 1Q24 Update🇧🇷
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