According to Gartner’s most recent forecast, worldwide end-user spending on public cloud services will increase by 20.4 percent to $675.4 billion in 2024, up from $561 billion in 2023. This expansion is being driven by generative AI (GenAI) and application modernization.
“The continued growth we expect to see in public cloud spending can be largely attributed to GenAI due to the continued creation of general-purpose foundation models and the ramp up to delivering GenAI-enabled applications at scale,” said Sid Nag, vice president and analyst at Gartner. “Because of this continued growth, we expect public cloud end-user spending to eclipse the one trillion dollar mark before the end of this decade.
Public cloud spending is expected to increase as Mena companies transition to fully digitalized corporations. Furthermore, Middle Eastern countries are striving for a common economic goal of becoming technology and data-centric. According to Shailendra Upadhyay, Senior Principal Analyst at Gartner, organizations are using the cloud to enable technologies such as AI and business analytics to enhance their capabilities.
SaaS spend is driven by applications being modernised by independent software vendors to run in a SaaS-based consumption model,” Nag stated. “Organizations continue to increase their cloud usage for specific use cases such as AI, machine learning, Internet of Things and big data which is driving this SaaS growth.
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