Worldwide public cloud end-user spending to reach nearly $500bn in 2022: Gartner
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Worldwide public cloud end-user spending to reach nearly $500bn in 2022: Gartner

Worldwide public cloud end-user spending to reach nearly $500bn in 2022: Gartner

In the Middle East and North Africa, end-user spending on public cloud will total $5.8bn in 2022, growing 18.8 per cent from 2021

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Cloud end-user spending

Worldwide end-user spending on public cloud services is forecast to grow 20.4 per cent in 2022 to total $494.7bn, up from $410.9bn in 2021, according to the latest forecast from Gartner. In 2023, end-user spending is expected to reach nearly $600bn.

“Cloud is the powerhouse that drives today’s digital organisations,” 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.”

Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6 per cent, followed by desktop-as-a-service (DaaS) at 26.6 per cent and platform-as-a-service (PaaS) at 26.1 per cent. The new reality of hybrid work is prompting organisations 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 $2.6bn in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6bn in spending.

“Cloud native capabilities such as containerisation, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditised compute such as IaaS or network-as-a-service,” said Nag. “As a result, they are generally more expensive which is fueling spending growth.”

SaaS remains the largest public cloud services market segment, forecasted to reach $176.6bn in end-user spending in 2022. Gartner expects steady velocity within this segment as enterprises take multiple routes to market with SaaS, for example via cloud marketplaces, and continue to break up larger, monolithic applications into composable parts for more efficient DevOps processes.

In MENA, end-user spending on public cloud will total $5.8bn in 2022, growing 18.8 per cent from 2021. Cloud system infrastructure services (IaaS) is forecast to record the highest growth in 2022 (39 per cent), followed by cloud application infrastructure services (PaaS). Cloud application services (SaaS) is forecast to be the highest spending vertical for end-users in MENA in 2022.

Emerging technologies in cloud computing such as hyperscale edge computing and secure access service edge (SASE) are disrupting adjacent markets and forming new product categories, creating additional revenue streams for public cloud providers.

“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,” said 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.

“IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys,” said Nag. “The organisations combining cloud with other adjacent, emerging technologies will fare even better.”

Read: MENA end-user security and risk management spending to grow 11.2% in 2022: Gartner

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