Amid the COVID-19 pandemic, both the public and private sector are turning to telework to help stem the spread of the virus. This reliance on telework has increased investment in cloud computing services, which will cause the cloud market to grow 18.4 percent in 2021, according to a Nov. 17 report from Gartner.
“The pandemic validated cloud’s value proposition,” said Sid Nag, research vice president at Gartner. “The ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity is providing the impetus for organizations to rapidly accelerate their digital business transformation plans. The increased use of public cloud services has reinforced cloud adoption to be the ‘new normal,’ now more than ever.”
With the 18.4 percent increase, the global public cloud market will be worth $304.9 billion in 2021, up from $257.5 billion in 2020. In addition to just an increase in raw spending numbers, IT teams will see that a larger portion of their budget will go to cloud, with cloud projected to make up 14.2 percent of the total global enterprise IT spending market in 2024, up from 9.1 percent in 2020.
“The COVID-19 pandemic forced organizations to quickly focus on three priorities: preserve cash and optimize IT costs, support and secure a remote workforce, and ensure resiliency,” said Nag. “Investing in cloud became a convenient means to address all three of these needs.”
In that vein, Gartner found that 70 percent of organizations currently using cloud services anticipates increasing their cloud spending directly as a result of the disruption caused by COVID-19. Gartner believes this increased in spending on cloud will last well beyond the end of the pandemic. “As enterprises increase investments in mobility, collaboration, and other remote working technologies and infrastructure, Gartner expects growth in public cloud to be sustained through 2024,” the report said.
Additionally, Gartner noted that the rising trend of cloud service providers partnering with telecommunications companies to extend their reach into the edge and support a hybrid workforce may also lead to further market growth.
“As CIOs think more strategically about how to lay the foundations to support a return to growth, it is clear that the move to digital and associated services will play a big role for organizations in the future,” said Nag. “Cloud adoption therefore becomes a significant means to stay ahead in a post-COVID-19 world focused on agility and digital touchpoints.”