In a significant development for the tech industry, public cloud services are poised to see a remarkable surge, with end-user spending anticipated to reach $723.4 billion by 2025, a substantial increase from the projected $595.7 billion in 2024. This projection comes from the latest report by Gartner, Inc., a leading research and advisory company, highlighting the growing dependence on cloud technologies in businesses worldwide.
Sid Nag, Vice President Analyst at Gartner, commented on the accelerating integration of artificial intelligence (AI) into IT and business operations, noting that this trend is fundamentally reshaping cloud computing’s role in facilitating business outcomes. He stated, “The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes.”
The report indicates that organisations are increasingly adopting a hybrid cloud approach, with expectations that 90% will transition to this model by 2027. This approach allows businesses to leverage both on-premises and cloud resources, enabling greater flexibility and efficiency. A primary challenge identified will be data synchronization across these hybrid environments, particularly regarding the deployment and management of Generative AI (GenAI) tools.
The growth forecast encompasses all segments of the cloud market, which are predicted to experience double-digit growth rates in 2025. This trend places Infrastructure and Operations (I&O) leaders under pressure to strategically integrate their infrastructure into GenAI frameworks and prepare for AI operations at the edge. The rise of industry-specific and vertical-specific GenAI models, which necessitate secure and tailored training, is also expected to propel global spending in public cloud services.
Gartner further specifies a notable shift towards Cloud Infrastructure and Platform Services (CIPS), which encompasses an integrated delivery of Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). In 2025, the attractiveness of CIPS offerings will drive spending to an expected $301 billion, marking a 24.2% growth. CIPS is anticipated to account for 72% of IT spending on IaaS and PaaS by 2025, up from 70% in 2022. This shift toward integrated cloud solutions emerges as organisations contend with the complexity of modern workloads while seeking streamlined processes for development, deployment, and operations.
Additionally, Gartner highlights the importance of cross-cloud integration frameworks (CCIF) as a crucial factor in enabling a viable multicloud environment. Organisations are increasingly demanding capabilities that facilitate advanced AI workloads and applications across different cloud platforms.
The implications of these trends underscore a pivotal moment in how businesses interact with technology, where the intersection of AI, cloud computing, and integrated service platforms is likely to define the operational landscape of the near future. As organisations navigate these developments, the focus on maximising cloud efficiencies through hybrid and multicloud strategies will be central to their growth and innovation efforts.
Source: Noah Wire Services