​Global spending on public cloud service market to grow 21.7% on-year: market data

By Park Sae-jin Posted : April 21, 2023, 14:08 Updated : April 21, 2023, 14:08

[Gettyimages Bank]

SEOUL -- The world's governments and private companies will spend more money on public cloud service, market data showed.
A public cloud service is a shared-computing service where a third-party company provides cloud computing resources that is accessible by the internet. Client companies can operate their applications and other services to store, process, and analyze data. Many public cloud services are provided through on-demand formats tailored to meet the requirements of each company.
Public cloud service is attractive to government administrative bodies and private companies as it can save management and manpower costs. Also, clients can skip the process for the development of applications and solutions by using tailored programs offered by service providers.  
According to data released by Gartner, a global market research firm, the world's governments and companies would spend $59.7 billion on public cloud services in 2023, up 21.7 percent from $49.1 billion in 2022. The market analyst said that the increased spending on public cloud services is due to the increased number of generative artificial intelligence services including Chat GPT, an AI-based chatbot service.
Gartner said that hyper-scale cloud service providers lead the cloud agenda and governments and private companies see cloud services as a strategic platform for digital innovation. Because of intensifying competition, cloud service providers are put into a situation where they have to offer better and upgraded features than their competitors, the market analyst said.  
The global cloud services market will grow evenly in 2023, Gartner predicted. Among cloud-based services, infrastructure as a service (IaaS) market would show the largest growth by 30.9 percent on year to reach $150.3 billion in 2023. The market analysis firm said that about 75 percent of the world's governments and private companies will adopt cloud services by 2026.
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