Gartner predicts a huge increase in worldwide end-user spending on public cloud services

All sectors of the cloud market to reach double-digit growth over next year

Worldwide end-user spending on public cloud services is set to reach $723.4bn (£572.44) in 2025, up from $595.7bn in 2024, according to Gartner.

This increase is the result of a significant double-digit growth forecast across all sectors of the cloud market.

Cloud application infrastructure services (PaaS) will spike 21.6 per cent over the next year, reaching $208.64m ($171.56m in 2024).

Cloud application services (SaaS) will increase by 19.2 per cent year-on-year, Gartner says.

The analyst house expects cloud system infrastructure services (IaaS) to jump to 24.8 per cent next year, from $169.8m to $211.85m.

Cloud desktop-as-a-service (DaaS) will reach $3.46m, an 11.1 per cent increase from this year.

Finally, Gartner says end-user spending on cloud infrastructure and platform services (CIPS) will climb 24.2 per cent, reaching $301bn in 2025.

Cross cloud integration framework (CCIF) will be a key driver of the CIPS adoption model, according to the research.

Organisations are likely to demand more cross cloud federated genAI capabilities to service advanced artificial intelligence workloads and use cases.

The report also suggests that 90 per cent of all organisations will adopt a hybrid cloud approach through 2027.

The most urgent challenge, according to Gartner, is data synchronisation across the hybrid cloud environment.

This increase is proof that infrastructure and operations (I&O) leaders have to quickly and effectively integrate into their GenAI strategies and prepare for running AI and GenAI infrastructure.

“The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes,” said Sid Nag, VP analyst at Gartner.

“Organisations are choosing CIPS because workloads of today are complex, and organisations are seeking integrated platforms to simplify development, deployment and operations.

“Organisations deploying a multicoud adoption model, which is still recording growth, are also driving spend on CIPS.”