Although COVID-19 has brought tough times for multiple organizations, cloud services have eased their troubles as sectors such as, online education providers, entertainment, and many others have rapidly adopted cloud services. Global research and advisory firm Gartner’s forecast also points toward the same trend as it has predicted an increase of 18.4% in end-user expenditure on public cloud services from $257.5 billion in 2020 to $304.9 billion in 2021 worldwide.
Gartner forecasts cloud services will make up 14.2% of the total IT expenditure market in 2024. As per Gartner’s predictions, Software-as-a-Service (SaaS) will have the largest market share, as it is projected to grow at 16% to $117.7 billion by 2021. In comparison, Platform-as-a-Service (PaaS) will have a relatively higher growth at 26.6% to $55.4 million in 2021.
Other cloud segments, including Infrastructure-as-a-Service (IaaS), Business Process-as-a-Service (BPaaS), Desktop-as-a-Service (DaaS), and Cloud Management and Security Services, are likely to see fair growth in the following years. According to Gartner, this rapid increase in PaaS is driven by the increasing number of remote workers in need of high performing, scalable, and secure infrastructure to enable them to manage business applications without maintaining the infrastructure such processes typically require.
Talking about the recently released predictions, Sid Nag, the research Vice President at Gartner, said, “the pandemic validated the cloud’s value proposition. The ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity is providing the impetus for organizations to rapidly accelerate their digital business transformation plans. The increased use of public cloud services has reinforced cloud adoption to be the ‘new normal,’ now more than ever.”
Lastly, Gartner believes that up to 70% of organizations using cloud services today plan to increase their expenditure. As these organizations increase their investments for mobility, reliability, agility, and collaboration, growth is likely to be sustained till 2024, according to Gartner. Further, the growing trend of partnerships between cloud service providers and telecom companies to extend coverage and facilitate hybrid workforces is likely to amplify cloud sector’s growth in the coming years.