Friday, 24 July 2020 05:18

Gartner sees public cloud services spend rising 6.3% this year

Gartner sees public cloud services spend rising 6.3% this year Pixabay

Spending on public cloud services will grow from US$242.7 billion (A$341.4 billion) last year to US$257.9 billion in 2020, an increase of 6.3%, the technology analyst firm Gartner has forecast.

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.”

Gartner said software-as-a-service remained the largest market segment and was predicted to increase to US$104.7 billion this year.

"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.

gartner public cloud

"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.”

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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