Led by SaaS, 2022 Cloud Spending to Approach $500 Billion

Cloud computing costs are expected to rise by 20 percent to an estimated $494.7 billion this year, according to a new report from Gartner. Infrastructure-as-a-service (IaaS) is earmarked for the most significant growth, up 30.6 percent to $119.7 billion this year. Desktop-as-a-service (DaaS) is the second most robust sector, at 26.6 projected growth, followed by platform-as-a-service (PaaS), at 26.1 percent. “Cloud-native capabilities such as containerization, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditized compute such as IaaS or network-as-a-service,” which makes them more expensive, said Sid Nag, research VP 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,” Nag continued in the company’s summary for “Forecast: Public Cloud Services, Worldwide, 2020-2026, 1Q22 Update.”

“Technology leaders and industry analysts said the value that advanced software tools provide, such as leveraging data to boost customer services or drive more informed business decisions, can make them an easy sell to chief executives and corporate boards overseeing information-technology budgets,” reports The Wall Street Journal, noting this hat has been “especially true since the COVID-19 pandemic began in 2020” forcing many companies to invest in digital tools and remote-work technologies.

Gartner researchers believe cloud services growth “will continue through 2023 to deliver a total of nearly $600 billion next year,” according to The Register, noting that “while infrastructure and DaaS are forecast to see the highest rate of growth, Gartner’s predictions for the actual level of spending paint a different picture: the highest share of the overall spend is still expected to remain with cloud-hosted applications (SaaS), at $176.6 billion, with infrastructure services (IaaS) coming in a distant second.”

The third highest spending category for during 2022 is predicted to be PaaS at $109.6 billion.

Gartner “points to new product categories that it says are opening up as technologies such as secure access service edge (SASE) start to disrupt adjacent markets, with the focus of differentiation shifting to capabilities that can disrupt digital businesses and operations in enterprises directly,” The Register reports.

“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 organizations combining cloud with other adjacent, emerging technologies will fare even better.”

End of an Era for Kubernetes, Protocol, 4/19/22
New Gartner Report Shows Massive Growth in the Database Market, Fueled by Cloud, TechRepublic, 4/19/22

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