- Total cloud spending will increase 21.4% to $723.4 billion in 2025, says Gartner
- However, the data set no longer includes some key areas.
- Performance in 2024 is lower than expected
New data from Gartner claims that global cloud spending will continue to grow through 2025, but reading between the lines makes the certainty of some areas more questionable.
As 2024 comes to a close, Gartner predicts growth will be seen in four key categories: cloud application infrastructure services (Paas), cloud application services (SaaS), cloud desktop as a service ( Daas) and cloud systems infrastructure services (Iaas). – will stabilize at 19.2%, slightly below the 19.9% observed in 2023.
That said, there are some omissions in the data that indicate that not all areas of cloud spending will be as successful.
Cloud spending could be slowing
Total cloud spending is projected to increase dramatically, from $595.7 billion in 2024 to $723.4 billion in 2025, marking a healthy 21.4% increase, more than we’ve seen in the past two years .
However, the cloud market is so large that predicting accurately can be extremely difficult, and even minor trends could have a significant ripple effect.
The key to the concern is that Gartner has been slowly removing categories from its predictions. In 2023, the company acquired cloud management and security services, and business process as a service (BPaaS) was eliminated this year. Neither appears to have been included in any of the remaining categories.
Of the remaining four categories, DaaS is projected to see the smallest change in 2025, up just 0.5%. This year and last, the sector grew 0.6%. It may only be a tenth of a percentage point, but in terms of change, 0.5% is a 16.7% decrease from 0.6%.
The figures also reveal that spending on IaaS computing, storage and networking capacity will be lower than previously anticipated earlier this year.
The news comes as many companies are considering moving from the cloud to on-premises infrastructure. The cloud used to be a cheaper and more flexible alternative, but the margin has decreased significantly.
Separately, Canalys senior director Rachel Brindley said companies must “take care to avoid overspending or inefficient allocation of resources.”
Brindley added: “Ensuring the sustainability of these investments over time will be vital to maintaining long-term financial health and competitive advantage.”
Through The next platform
