- Gartner predicts growth acceleration in 2025 with an increase of 21.4%
- Cloud application services will account for around $300 billion in business
- By contrast, desktop-as-a-service, once a promising growth area, will barely reach $4 billion.
New research has claimed that spending on cloud services will reach a new high as demand for AI continues to grow.
A Gartner report predicts that global end-user spending on public cloud services will reach $723.42 billion in 2025, a growth rate of 21.4%, up from $595.652 billion in 2024. highlighting the growing reliance on cloud services across industries.
Cloud application services (SaaS) remains a key segment, with spending now projected to grow from $250.8 billion in 2024 to $299.1 billion in 2025. Similarly, spending is expected to in cloud systems infrastructure (IaaS) services will reach $211.9 billion in 2025, while platform as a service (PaaS) will increase to $208.6 billion. By contrast, desktop as a service (DaaS), once considered a promising growth area, is now projected to contribute only $3.85 billion to the 2025 total, reflecting its limited adoption and marginal market share. from the cloud.
Predicting cloud infrastructure spending is complicated
By analyzing market dynamics and observing the fractional change in monthly cloud spending figures, The next platform “The cloud infrastructure market is now so large that it is very difficult for it to change dramatically. But since people can turn off server, storage and network capacity as easily as they can turn it on, predicting how much money the cloud will spend world in cloud infrastructure can be complicated.
SOP A trend was also observed in which “More than two-thirds and heading towards three-quarters of raw platform and infrastructure services sold together“,” now called Cloud Infrastructure and Platform Services (CIPS). In 2022, CIPS accounted for 70% of total IaaS and PaaS revenue, and this share is expected to grow to 71.6% by 2025. The Next Platform concluded: “In the long term, this is what ‘cloud’ will mean … “Not only do you choose their preferences for servers, storage and networking, but you also choose their platform.”
The figures show an increase from a separate Gartner report from November 2024 that said spending on public cloud services would reach $723.421 billion, with Gartner vice president analyst Sid Nag noting at the time: “The Use of AI technologies in IT and business operations is relentlessly accelerating the role of cloud computing in supporting business operations and outcomes. “Cloud use cases continue to expand with an increasing focus on distributed, hybrid, cloud-native and multi-cloud environments supported by a cross-cloud framework.”
Hybrid cloud environments are expected to become the norm in the coming years, with Gartner predicting that 90% of organizations will adopt this approach by 2027.
