Leading analyst firm Gartner has forecast the Public Cloud Services market 6.3% growth in 2020 to $257 billion despite shrinking IT budget. Desktop as a service is forecast to achieve the highest growth increasing by 95.4% to $1.2 billion, thanks to COVID.
The effects of the global economic downturn are intensifying organizations’ urgency to move off of legacy infrastructure operating models. Providing an inexpensive remote-working option, DaaS is forecast to grow over $2 billion by 2022, noted Gartner’s latest report on Public Cloud Services.
“When the COVID-19 pandemic hit, cloud responded to increased demand and catered to customers’ preference of elastic, pay-as-you-go consumption models,” said Sid Nag, research vice president at Gartner.
Software as a service (SaaS) is the largest market segment and is forecast to grow to $104.7 billion in 2020 (see infographic below).
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The SaaS growth is driven by the shift from on-premise to SaaS models. This is in conjunction with the growing need for new collaboration tools amid the pandemic.
When the COVID-19 pandemic hit, cloud responded to increased demand and catered to customers’ preference of elastic, pay-as-you-go consumption models
The second-largest market segment is Cloud System Infrastructure Services, or infrastructure as a service (IaaS), which is forecast to grow 13.4% to $50.4 billion in 2020.
Despite shrinking IT budgets, Public cloud services serve as the one bright spot in the outlook. Gartner forecasts global IT spending could decrease by 8% even as cloud spending is expected to grow rapidly.
‘Desktop As A Service market reaches $1.2billion in 2020’
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“The use of public cloud services offer CIOs two distinct advantages during the COVID-19 pandemic: cost scale with use and deferred spending,” noted Gartner.
“Any debate around the utility of public cloud has been put aside since the onset of COVID-19.
For the remainder of 2020, organizations that expand remote work functionality will prioritize collaboration software, mobile device management, distance learning educational solutions and security, as well as the infrastructure to scale to support increased capacity.”
