IDC projects public cloud services will reach $219.3 billion by 2027, with the Asia/Pacific region experiencing significant growth in public cloud services and software investments, investing heavily in cloud-based software, data analytics tools, and AI platforms to optimize operations, enhance customer experiences, and gain valuable insights.
Read MoreWorldwide end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023. Cloud has become essentially indispensable. However, that doesn’t mean cloud innovation can stop or even slow. The tables are turning for cloud providers as cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models. For example, organizations deploying GenAI services will look to the public cloud, given the scale of the infrastructure required.
Read MoreFor the second consecutive quarter, a survey conducted by Gartner, Inc. revealed that dependence on a specific cloud provider for multiple business capabilities is one of the top five emerging risks for organizations. “The risk associated with cloud concentration is fast losing its ‘emerging’ status as it is becoming a widely recognized risk for most enterprises,” said Ran Xu, director, research in the Gartner Legal Risk & Compliance Practice. “Many organizations are now in a position where they would face severe disruption in the event of the failure of a single provider.”
Read MoreSpending on compute and storage infrastructure products for cloud deployments increased 7.9% year over year in 2Q23 to $24.6 billion. Spending on cloud infrastructure continues to outgrow the non-cloud segment, with the latter declining 8.3% in 2Q23 to $14.4 billion. The cloud infrastructure segment experienced a decline of 23.2% in unit demand with an increase in average selling prices, mostly related to higher-than-usual GPU server shipments to hyperscalers.
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