Spending on public cloud is expected to hit $591 billion next year, up 20.7% from this year’s $490 billion, Gartner forecasted.
The drive to save through cloud efficiency is running up against the drag of rising costs, creating a push-and-pull dynamic. “Organizations want the benefit of cloud, but they can only spend what they have,” said Sid Nag, VP analyst at Gartner.
Higher energy costs, a tight labor market and global supply chain disruptions are three big budgetary bugaboos driving inflation and pushing companies to trim budgets.
At the center of the macroeconomic storm, cloud looms large as both an area for increased savings and spending, according to Nag.
The 20.7% increase in cloud spend forecast by Gartner, an uptick of almost two percentage points over 2022’s growth rate of 18.8%, reflects inflation’s push-and-pull impact.