Public Cloud End-User Spending to Reach $679 Billion in 2024

Public cloud end-user spending is forecast to reach $679 billion in 2024, up 20.4% from $563.6 billion in 2023, according to Gartner. This growth is being driven by a number of factors, including:

1. The increasing adoption of cloud-based applications and services.

2. The need for more flexibility and scalability in IT infrastructure.

3. The desire to reduce costs and improve efficiency.

All segments of the cloud market are expected to see growth in 2024. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2024 at 26.6%, followed by platform-as-a-service (PaaS) at 21.5%. Software-as-a-service (SaaS) is also expected to grow strongly, with end-user spending forecast to reach $243.9 billion in 2024, up 18.8% from $205.2 billion in 2023.

The hyperscalers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), are expected to continue to dominate the public cloud market in 2024. However, there is also increasing interest in multi-cloud and hybrid cloud deployments, as businesses seek to avoid vendor lock-in and take advantage of the best features of each cloud provider.

GenAI adoption will also support the growth in industry cloud platforms. GenAI models that are applicable across diverse industry verticals might require significant customization, affecting scalability and cost-effectiveness. Public cloud providers can position themselves as partners in the responsible and tailored adoption of GenAI by building on the same approaches applied to industry clouds, sovereign clouds and distributed clouds.”

As businesses move more sensitive data to the cloud,they are increasingly concerned about security and compliance. Cloud providers are investing heavily in security and compliance tools and services, and businesses are increasingly adopting cloud-based security solutions.

Overall, the public cloud market is expected to continue to grow strongly in 2024. As businesses embrace the cloud to innovate and improve their IT infrastructure. Cloud providers are investing heavily in new technologies and services to meet their needs.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA