The company said in a statement that desktop-as-a-service was expected to show the most growth, jumping by 95.4% to US$1.2 billion. DaaS is a cheap way for businesses to support a surge of remote workers and their need to securely access business applications from multiple devices and locations.
“When the COVID-19 pandemic hit, there were a few initial hiccups, but cloud ultimately delivered exactly what it was supposed to,” said Sid Nag, research vice-president at Gartner.
“It responded to increased demand and catered to customers’ preference of elastic, pay-as-you-go consumption models.”
"The continued shift from on-premises licensed software to subscription-based SaaS models, in conjunction with the increased need for new software collaboration tools during COVID-19, is driving SaaS growth," the company said.
"The second-largest market segment is cloud system infrastructure services, or infrastructure-as-a-service, which is forecast to grow 13.4% to US$50.4 billion in 2020. The effects of the global economic downturn are intensifying organisations’ urgency to move off legacy infrastructure operating models."
The company found that public cloud services served as the lone bright spot for IT spending in 2020. Cloud spending in many regions was expected to grow rapidly as economies reopened and more normal economic activity resumed, with regions such as North America expecting to return to higher spending levels as early as 2022.
“The use of public cloud services offer chief information officers two distinct advantages during the COVID-19 pandemic: cost scale with use and deferred spending,” said Nag. “CIOs can invest significantly less cash upfront by using cloud technology, rather than scaling up on-premises data centre capacity or acquiring traditional licensed software.
“Any debate around the utility of public cloud has been put aside since the onset of COVID-19. For the remainder of 2020, organisations that expand remote work functionality will prioritise collaboration software, mobile device management, distance learning educational solutions and security, as well as the infrastructure to scale to support increased capacity.”