2023-11-16 09:55:35
According to Gartner, overall cloud spending will continue to increase in the coming months. The use of IaaS services will be particularly stimulated by the needs for generative AI.
The growth of the cloud market continues globally and GenAI has become a driver, according to Gartner. The firm predicts a 20.4% increase in cloud investments in 2024, compared to 2023. With the volume of spending increasing from $563.6 billion to $678.8 billion.
All segments of the global cloud market are affected by these optimistic predictions. And it is IaaS services which should see the most sustained growth (+26.6%), followed by PaaS services (+21.5%).
GenAI, a boon and a challenge for cloud providers
Gartner notes that the rise of GenAI is both a boon and a challenge for cloud service providers. Given the size of the infrastructure required, organizations implementing generative AI applications should in most cases look to the public cloud. But for this choice to translate into success, hyperscalers will need to address non-technical concerns, including sustainability, pricing, sovereignty and privacy. “Hyperscalers that meet these needs will be able to capture a whole new revenue opportunity as GenAI adoption continues,” summarizes analyst Sid Nag.
The announced surge in industrial clouds
The ongoing development of industrial cloud platforms is another major factor driving cloud investments. According to Gartner, the rate of companies using industrial cloud platforms to accelerate their businesses will increase from less than 15% in 2023 to more than 70% in 2027. Additionally, the adoption of GenAI will also support the growth of these services cloud tailored to meet the specific needs of an industry. “GenAI models applicable to various verticals could require significant customization, which would affect scalability and cost-effectiveness. Public cloud providers can position themselves as partners in the responsible and adapted adoption of GenAI by relying on the same approaches as those applied to industrial clouds, sovereign clouds and distributed clouds,” observes the Gartner analyst.
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