Keywords: public cloud spending, Gartner forecast, generative AI, application modernization, cloud services, 2024 growth
Worldwide end-user spending on public cloud services is forecast to grow by 20.4%, reaching a total of $675.4 billion in 2024, up from $561 billion in 2023, according to the latest forecast from Gartner, Inc. This significant growth is attributed to the advancements in generative AI (GenAI) and ongoing application modernization.
Sid Nag, Vice President Analyst at Gartner, highlighted the impact of generative AI on the growth trajectory of public cloud spending. “The continued growth we expect to see in public cloud spending can be largely attributed to GenAI due to the ongoing creation of general-purpose foundation models and the ramp-up to delivering GenAI-enabled applications at scale,” he stated.
The influence of GenAI is substantial, driving innovation and new use cases within the cloud ecosystem. This trend is expected to push public cloud end-user spending past the one trillion dollar mark before the end of the decade, signaling a transformative period for cloud services.
Application modernization is another critical factor contributing to this growth. As businesses continue to update and enhance their legacy applications to leverage the scalability, flexibility, and performance benefits of the cloud, the demand for public cloud services is set to increase significantly.
Gartner’s forecast underscores the dynamic evolution of the cloud market, emphasizing the pivotal role of generative AI and application modernization in shaping the future of cloud spending. As organizations globally continue to adopt and integrate advanced technologies, the public cloud sector is poised for remarkable expansion, offering innovative solutions and driving digital transformation.
