“Hyperscale cloud providers are driving the cloud agenda,” says Sid Nag, vice president analyst at Gartner, in a statement. “Organizations today view cloud as a highly strategic platform for digital transformation, which is requiring cloud providers to offer more sophisticated capabilities as the competition for digital services heats up.”

Nag added, “Generative AI is supported by large language models (LLMs), which require powerful and highly scalable computing capabilities to process data in real-time. Cloud offers the perfect solution and platform. It is no coincidence that the key players in the generative AI race are cloud hyperscalers.”

Infrastructure-as-a-service (IaaS) Growth forecast

All segments of the cloud market are expected see growth in 2023. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2023 at 30.9%, followed by platform-as-a-service (PaaS) at 24.1%.

The Stamford, Conn. research firm also predicts that by 2026, 75% of organizations will adopt a digital transformation model predicated on cloud as the fundamental underlying platform.

“The next phase of IaaS growth will be driven by customer experience, digital and business outcomes and the virtual-first world,” said Nag. “Emerging technologies that help businesses interact more closely and in real time with their customers, such as chatbots and digital twins, are reliant upon cloud infrastructure and platform services to meet growing demands for compute and storage power.”

While cloud infrastructure and platform services are driving the highest spending growth, SaaS remains the largest segment of the cloud market by end-user spending. SaaS spending is projected to grow 17.9% to total $197 billion in 2023.

“The technology substrate of cloud computing is firmly dominated by the hyperscalers, but leadership of the business application layer is more fragmented,” said Nag. “Providers are facing demands to redesign SaaS offerings for increased productivity, leveraging cloud-native capabilities, embedded AI and composability – particularly as budgets are increasingly driven and owned by business technologists. This change will ignite a wave of innovation and replacement in the cloud platform and application markets.”

The post Worldwide Public Cloud End-User Spending to Reach Nearly $600B in 2023 appeared first on My TechDecisions.

Qumulo’s Cloud Now Program is designed to eliminate barriers to unstructured data storage in the cloud while speeding time to deployment. Customers can now build a proof of concept (POC) at scale.

Business decision makers, and the cloud architects that support them, are turning to the cloud to scale rapidly. Recent macroeconomic challenges, such as supply chain delays and labor shortages, have accelerated cloud adoption.

According to recent analyst reports, organizations are increasing annual cloud spending by 20.7% through 2025, and more than 40% of enterprises surveyed are moving workloads to the cloud to mitigate supply chain disruption.

Related: Cloud Infrastructure Spending Shows Strong Growth

“Today’s enterprises need to manage their data and keep their business moving forward. We believe every business should experience the benefits of cloud, which is why we are offering to build proof of concept environments for our customers free of charge in the cloud of their choice,” said Bill Richter, CEO at Qumulo, in a statement. “The Cloud Now Program removes concerns of cost and infrastructure lock-in – something legacy vendors simply can’t do.”

As the a multi-cloud provider that runs on AWS, GCP, and Azure infrastructure at scale, Qumulo gives customers the ability to manage large amounts of unstructured data, regardless of which cloud it is in.

The Cloud Now Program:

• Offers Qumulo Cloud Q licensing and storage infrastructure across supported clouds including Amazon AWS, Microsoft Azure and the Google Cloud Platform;
• Allows customers to build solutions across any supported cloud in production before purchasing services;
• Allows customers to deploy projects with cloud services ready at their fingertips, avoiding lengthy supply chain delays for infrastructure hardware;
• Provides deployment support of the customer’s workload for a white glove deployment experience;
• Allows customers the ability to test and receive immediate value from their cloud strategy with  Qumulo support throughout the duration of the program.

The post Qumulo Launches Cloud Now Program appeared first on My TechDecisions.

As supply chain constraints have depleted vendor inventories over the past several quarters, IDC reports year-over-year growth in cloud infrastructure spending. As backlogs continue to grow, the demand bodes well for future growth, according to IDC; as long as the economy stays healthy, and supply catches up with the demand.

In 2021, cloud infrastructure spending totaled $73.9 billion, up 8.8% over 2020. Spending on shared cloud infrastructure reached $14.4 billion in the fourth quarter, increasing 13.9% compared to a year ago, and grew to $51.4 billion for 2021, an increase of 7.5%.

IDC says it expects to see continuously strong demand for shared cloud infrastructure with spending projected to surpass non-cloud infrastructure spending in 2022.

However, spending on dedicated cloud infrastructure increased 12.5% year-over-year in 4Q21 to $6.7 billion and grew 11.8% to $22.5 billion for the full year 2021. Of the total dedicated cloud infrastructure, 47.5% in 4Q21 and 46.1% in 2021 were deployed on customer premises.

Related: Cloud Infrastructure Spending To Reach $112.9 billion by 2025

For the rest of 2022, IDC is forecasting cloud infrastructure spending to grow 21.7% compared to 2021 to $90.0 billion, while non-cloud infrastructure is expected to decline slightly, down 0.3% to $59.4 billion.

Shared cloud infrastructure spending is expected to grow 25.5% year-over-year to $64.5 billion for the full year. Spending on dedicated cloud infrastructure is expected to grow 13.1% to $25.4 billion in 2022.

How much do service providers spend on cloud infrastructure?

As part of IDC’s Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, tracks various categories of service providers and how much compute and storage infrastructure these service providers purchase, including both cloud and non-cloud infrastructure.

In 4Q21, service providers, as a group, spent $21.2 billion on compute and storage infrastructure, up 11.6% from 4Q20. This spending accounted for 55.4% of total compute and storage infrastructure spending.

For 2021, spending by service providers reached $75.1 billion on 8.5% year-over-year growth, accounting for 56.2% of total compute and storage infrastructure spending.

IDC expects compute and storage spending by service providers to reach $89.1 billion in 2022, growing at 18.7% year-over-year.

Future Cloud Spending Forecasts

Long term, IDC expects spending on compute and storage cloud infrastructure to have a compound annual growth rate (CAGR) of 12.6% over the 2021-2026 forecast period, reaching $133.7 billion in 2026 and accounting for 68.6% of total compute and storage infrastructure spend.

Shared cloud infrastructure will account for 72.0% of the total cloud amount, growing at a 13.4% CAGR.

Spending on dedicated cloud infrastructure will grow at a CAGR of 10.7%. Spending on non-cloud infrastructure will flatten out at a CAGR of 0.5%, reaching $61.2 billion in 2026.

Spending by service providers on compute and storage infrastructure is expected to grow at a 11.7% CAGR, reaching $130.6 billion in 2026.

The post IDC: Cloud Infrastructure Spending Shows Strong Growth appeared first on My TechDecisions.