AI boom buoys SaaS growth as cloud market expands: Gartner.

11 May 2023

Gartner forecasts cloud market growth and AI software boom – Gartner’s latest report forecasts that end-user spending on cloud services will grow by 21.7% in 2023. This percentage is higher than their October estimate, which predicted a growth rate of 20.7%. SaaS services are not the only cloud segment that Gartner forecasts to grow. IaaS leads the pack, potentially seeing a 30.9% end-user spending growth in 2023. PaaS is the second largest segment, with a 24.1% growth.

Emerging technologies like generative AI, Web 3, and metaverse drive cloud adoption. Enterprise-level clients turn to the cloud for scalability to support generative AI. AWS, Microsoft, and Google Cloud control around two-thirds of the cloud market. Competition between these companies is driving development.

Gartner revised its overall 2023 IT spending forecast considering these developments. They increased their previous estimate of 2.4% to 5.5%. With these movements, the industry looks bullish on cloud, AI, and other emerging technologies.

Source: Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023

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