Gartner predicts global cloud spending will increase by 22% in 2023

 

What happened: Gartner’s latest forecast predicts that global end-user spending on public cloud services will jump 21.7% YoY from $491B in 2022 to $597.3B in 2023. The segments of the cloud market that are poised to see the most growth are IaaS (30.9%) and PaaS (24.1%.) According to Gartner, the advent of new technologies like generative AI/large language models, Web3, and the metaverse rely on cloud computing to process data in real time and are therefore driving a surge in global end-user spending on public cloud services. Moreover, a push towards new generative AI-driven customer service and experience solutions will further drive the demand for cloud infrastructure and platform services.  Why it matters: The digital landscape is becoming more competitive amid the generative AI boom and the growing popularity of Web3 applications. Cloud giants have partnered with generative AI and Web3 startups to boost their competitive edge. Tech companies that miss the opportunity to capitalize on these new technologies could fall behind. Where to see the impact: Microsoft kicked off the generative AI craze when it announced a multibillion-dollar investment in Open AI. Shortly after, Google Cloud partnered with the AI startup Anthropic. Tencent Cloud recently announced a slew of Web3 partnerships with Ankr, Avalanche, Scroll, and Sui Blockchain. Earlier this month, Google Cloud announced a partnership with The Celo Foundation to provide workshops and cloud services for developers and Web3 founders. These are just a few alliances between cloud firms and generative AI and Web3 organizations.