Global cloud spending to hit $495bn in 2022, Gartner says

Global spending on public cloud services is expected to jump 20.4 per cent annually to $495 billion this year, as businesses expedite the pace of their digital transformation in the post-Covid era, US researcher Gartner has said.

Total spending is nearly $84bn more than the amount spent in 2020 and is expected to surge nearly 21.3 per cent yearly to almost $600bn next year.

“Cloud is the powerhouse that drives today’s digital organisations,” said Sid Nag, research vice president at Gartner.

“CIOs [chief information officers] 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.”

For businesses, moving to a cloud system hosted by a specialised company — such as Oracle, Amazon Web Services or SAP — is more economical than creating their own infrastructure of servers, hardware and security networks, industry experts said. It also brings down the overall cost of ownership.

In overall cloud spending, infrastructure-as-a-service software is forecast to experience the highest end-user spending growth this year at 30.6 per cent. It will be followed by desktop-as-a-service at 26.6 per cent and platform-as-a-service at 26.1 per cent, Gartner predicted.

In cloud industry, businesses pay only for those selective services or resources that they use over a period of time.

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 opt for the latest cloud solutions, the Connecticut-based market researcher said.

In the Middle East and North Africa, end-user spending on public cloud is forecast to reach $5.8bn this year, growing 18.8 per cent year-on-year.

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