Economic headwinds be damned, cloud migrations 'not stopping'
"Cloud migration is not stopping," said Nag."IaaS will naturally continue to grow as businesses accelerate IT modernization initiatives to minimize risk and optimize costs. Moving operations to the cloud also reduces capital expenditures by extending cash outlays over a subscription term, a key benefit in an environment where cash may be critical to maintain operations."
So which areas of cloud might see the biggest impact as customers reassess spending priorities in light of inflation? Software and Platform-as-a-Service, says Gartner. PaaS is projected to swell 23 percent to $136 billion and SaaS is estimated to grow 16.8 percent to a little more than $195 billion. "Higher-wage and more skilled staff are required to develop modern SaaS applications, so organizations will be challenged as hiring is reduced to control costs," said Nag."But since PaaS can facilitate more efficient and automated code generation for SaaS applications, the rate of PaaS consumption will consequently increase."
"Despite growth, profitability and competition pressures, cloud spending will continue through perpetual cloud usage," Nag added."Once applications and workloads move to the cloud they generally stay there, and subscription models ensure that spending will continue through the term of the contract and most likely well beyond. For these vendors, cloud spending is an annuity – the gift that keeps on giving.
Gartner also told us it expects Desktop-as-a-Service to grow to $3.1 billion next year versus $2.54 billion in 2022. Cloud business process services are forecast to reach $65 billion, up from $60.1 billion, and cloud management and security services is estimated to reach $41.6 billion, up from $34.1 billion. ®
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