Gartner: 4 Trends Shaping the Future of Public Cloud
Global End-User Spending on Public Cloud Services Expected to Exceed $480 Billion Next Year
August 03, 2021
Share this

Four new trends in cloud computing are continuing to expand the breadth of cloud offerings and capabilities, accelerating growth across all segments in the public cloud services market, according to Gartner, Inc. The four trends are: cloud ubiquity, regional cloud ecosystems, sustainability and carbon-intelligent cloud, and cloud infrastructure and platform service (CIPS) providers' automated programmable infrastructure.

"The economic, organizational and societal impact of the pandemic will continue to serve as a catalyst for digital innovation and adoption of cloud services," said Henrique Cecci, Senior Research Director at Gartner. "This is especially true for use cases such as collaboration, remote work and new digital services to support a hybrid workforce."

1. Cloud Ubiquity

Today, the cloud underpins most new technological disruptions, including composable business, and has proven itself during times of uncertainty with its resiliency, scalability, flexibility and speed. Hybrid, multicloud and edge environments are growing and setting the stage for new distributed cloud models.

In addition, new wireless communications advances, such as 5G R16 and R17, will push cloud adoption to a new level of broader, deeper and ubiquitous usage. Use cases such as enhanced mobile banking experiences and healthcare transformation will also emerge.

As a result, global cloud adoption will continue to expand rapidly. Gartner forecasts end-user spending on public cloud services to reach $396 billion in 2021 and grow 21.7% to reach $482 billion in 2022. Additionally, by 2026, Gartner predicts public cloud spending will exceed 45% of all enterprise IT spending, up from less than 17% in 2021.

"Organizations are advancing their timelines on digital business initiatives and moving rapidly to the cloud in an effort to modernize environments, improve system reliability, support hybrid work models and address other new realities compelled by the pandemic," said Brandon Medford, Senior Principal Analyst at Gartner.

2. Regional Cloud Ecosystems

Growing geopolitical regulatory fragmentation, protectionism and industry compliance are driving the creation of new regional and vertical cloud ecosystems and data services. Companies in the financial and public sectors are looking to reduce critical lock-in and single points of failure with their cloud providers outside of their country.

Regions not able to create or sustain their own platform ecosystems will have no choice but to leverage the platforms created in other regions and resort to legislation and regulation to maintain some level of control and sovereignty. Concerns among politicians, academia and tech providers in these regions are increasing, leading to initiatives such as GAIA-X in European countries.

3. Sustainability and "Carbon-Intelligent" Cloud

Nearly half of the respondents in the 2021 Gartner CEO Survey believe climate change mitigation will have a significant impact on their business. Cloud providers are responding to this growing focus on sustainability by instituting more aggressive carbon-neutral corporate goals, which creates new challenges for infrastructure and operations (I&O) leaders.

"New sustainability requirements will be mandated over the next few years and the choice of cloud services providers may hinge on the provider's 'green' initiatives," said Cecci.

4. CIPS Providers' Automated Programmable Infrastructure

Gartner expects the broad adoption of fully managed and artificial intelligence (AI)-/machine-learning (ML)-enabled cloud services from hyperscale CIPS providers. This will rapidly eliminate the operational burden of traditional I&O roles in the public cloud.

"Infrastructure is becoming programmable, and its operation is subsequently becoming automated," said Cecci. "Modern IT infrastructure, whether deployed in the data center or consumed in the public cloud, requires less manual intervention and routine administration than its legacy equivalents."

Share this

The Latest

October 04, 2024

In Part 1 of this two-part series, I defined multi-CDN and explored how and why this approach is used by streaming services, e-commerce platforms, gaming companies and global enterprises for fast and reliable content delivery ... Now, in Part 2 of the series, I'll explore one of the biggest challenges of multi-CDN: observability.

October 03, 2024

CDNs consist of geographically distributed data centers with servers that cache and serve content close to end users to reduce latency and improve load times. Each data center is strategically placed so that digital signals can rapidly travel from one "point of presence" to the next, getting the digital signal to the viewer as fast as possible ... Multi-CDN refers to the strategy of utilizing multiple CDNs to deliver digital content across the internet ...

October 02, 2024

We surveyed IT professionals on their attitudes and practices regarding using Generative AI with databases. We asked how they are layering the technology in with their systems, where it's working the best for them, and what their concerns are ...

October 01, 2024

40% of generative AI (GenAI) solutions will be multimodal (text, image, audio and video) by 2027, up from 1% in 2023, according to Gartner ...

September 30, 2024

Today's digital business landscape evolves rapidly ... Among the areas primed for innovation, the long-standing ticket-based IT support model stands out as particularly outdated. Emerging as a game-changer, the concept of the "ticketless enterprise" promises to shift IT management from a reactive stance to a proactive approach ...

September 27, 2024

In MEAN TIME TO INSIGHT Episode 10, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses Generative AI ...

September 26, 2024

By 2026, 30% of enterprises will automate more than half of their network activities, an increase from under 10% in mid-2023, according to Gartner ...

September 25, 2024

A recent report by Enterprise Management Associates (EMA) reveals that nearly 95% of organizations use a combination of do-it-yourself (DIY) and vendor solutions for network automation, yet only 28% believe they have successfully implemented their automation strategy. Why is this mixed approach so popular if many engineers feel that their overall program is not successful? ...

September 24, 2024

As AI improves and strengthens various product innovations and technology functions, it's also influencing and infiltrating the observability space ... Observability helps translate technical stability into customer satisfaction and business success and AI amplifies this by driving continuous improvement at scale ...

September 23, 2024

Technical debt is a pressing issue for many organizations, stifling innovation and leading to costly inefficiencies ... Despite these challenges, 90% of IT leaders are planning to boost their spending on emerging technologies like AI in 2025 ... As budget season approaches, it's important for IT leaders to address technical debt to ensure that their 2025 budgets are allocated effectively and support successful technology adoption ...