Cloud Spending To Scale $332B This Year

Gartner forecasts a 23.1% increase in public cloud spending in 2021

According to Gartner’s latest forecast, worldwide cloud spending is expected to reach $332.3 billion in 2021, which is an increase of 23.1% from 2020 ($270 billion).

Fahmida Y Rashid writes for VentureBeat on major cloud spending trends in 2021 and 2022 based on Gartner’s predictions. Here are the key points:

  • Emerging technologies like containerization, virtualization, and edge computing are reasons for the increase in cloud spending.

  • SaaS remains the largest market segment in 2021 and is predicted to touch $122.6 billion this year and $145.3 billion in 2022.

  • Due to global efforts to produce and distribute COVID-19 vaccines, SaaS applications that enable automation and supply chain are critical. 

  • Sid Nag, research VP at Gartner, feels that the pandemic further exacerbated the “loss of appetite” for data centers.

  • Cloud management and security services will reach $16 billion.

  • Cloud spending in 2021 and 2022 will be focussed on innovative applications combining cloud with AI, 5G, etc. 

  • Companies will depend on the cloud to adopt emerging technologies, and the resulting workload and applications will encourage cloud spending. 

  • International Data Corporation has said that worldwide edge computer spending will see 46.2% growth, followed by hardware at 32.2% and edge software at 21.6%.

  • Gartner also predicted that worldwide IT spending would reach $3.8 trillion in 2021, a growth of 4% from 2020.

What We Think

We aren’t surprised at all with the rapid growth of cloud and especially SaaS adoption. Its flexibility, speed, and cost-effectiveness, compared to on-premise software, makes it a clear winner. A lot of IT leaders we’ve spoken to also echo our thoughts. This will be expanded in a series of podcasts we’ll be releasing shortly.

You can find Fahmida’s article here and Gartner’s forecast here.