According to Gartner’s latest forecast, the worldwide end-user spending on the public cloud, will reach $723.4 billion in 2025, up from $595.7 billion in 2024, which is a 21.4% increase.
Gartner predicts that by 2027, around 90% of organizations will adopt a hybrid cloud strategy. One of the most pressing challenges for generative AI in the coming year will be data reconciliation across hybrid cloud environments.
All cloud market segments are expected to experience double-digit growth through 2025, highlighting the increasing pressure on I&O leaders to effectively integrate I&O, into their generative AI strategies and prepare to operate AI and generative AI infrastructure at the edge.
The report predicts that the growth of industry-and vertical-specific generative AI models that are structured, private, and secure, requiring advanced training, reasoning, and fine-tuning, which will continue to drive global spending on public cloud services.
In 2025, organizations will place greater focus on the efficiency of cloud infrastructure and platform services (CIPS) offerings.
Gartner defines CIPS as a fully integrated platform where cloud infrastructure services (IaaS) and cloud application infrastructure services (PaaS) are delivered as unified cloud services.
The use of AI in IT and business processes is rapidly accelerating the role of cloud computing in supporting business outcomes. Cloud use cases continue to expand, with a growing focus on distributed, hybrid, native, and multi-cloud environments, all supported by a framework that spans across various cloud types.
Organizations are increasingly choosing cloud infrastructure and platforms to address the complexity of today’s workloads, seeking integrated solutions to simplify development, deployment, and operations. The adoption of a multi-cloud model continues to grow, driving increased spending on cloud infrastructure and platforms.
In addition, the integration framework across multiple cloud types, which enables multi-cloud environments, will be a key driver of cloud infrastructure and platform adoption. Organizations will require unified generative AI capabilities across the cloud to support advanced AI workloads and use cases.
Gartner expects end-user spending On Cloud Infrastructure and Platform Services (CIPS) to grow by 24.2% in 2025, reaching $301 billion.
The CIPS offerings are projected to account for 72% of IT spending on cloud system infrastructure and cloud application infrastructure services in 2025, up from 70% in 2022.
Source: Al Anba
