Public cloud consumption to reach $600 billion in 2023

February 15, 2023
Chris Munoz
VP & Principal Cloud Practice

Gartner reports impressive growth despite inflation

According to a recent report by Gartner, global user spending on public cloud offerings will grow to nearly $600 billion, an increase of 20.7% from 2022. Among the predictions in the report is the forecast that Infrastructure as a Service (IaaS) will have the highest growth in 2023, with an anticipated spike of 29.8%. Across the board, consumption of public cloud services will grow in 2023.

The increased adoption of public clouds, such as AWS or Microsoft Azure, represents a second digital revolution in which businesses in all sectors have the means to virtualize and increase the efficiency of business processes, modernize applications, and bolster security. A public cloud is similar to a public utility, such as gas or water, because computing services are offered on demand through a third-party provider to multiple tenants. Unlike the on-premises alternative of a private cloud, public clouds are accessible from almost anywhere in the world. As a result, many businesses opt to create a hybrid cloud—a combination of private and public solutions.

This post will delve deeper into Gartner’s predictions for public cloud consumption in 2023 and review the benefits of deploying business operations across a public model.

Learn more: Securing your data backup in Microsoft Azure Cloud

Key benefits of public cloud computing

As the steady, year-over-year growth of public cloud consumption across all categories of service demonstrates, companies in all sectors are realizing that cloud computing is vital to staying competitive, efficient, and maximizing profits. Even though the Cloud combines many different technologies and services, a public cloud offers holistic benefits. They include:

  • Reduced IT burden. One of the highest IT budget line items for many companies is the maintenance of aging legacy applications and systems. A public cloud reduces that burden by outsourcing the upkeep of technology.
  • Scalability. The services of a public cloud are on-demand. Like turning on a spigot, your company can quickly ramp up a set of processes to accomplish specific goals.
  • Pay-as-you-go pricing. Thanks to microservices and similar offerings, you only pay for the computing services you need when you need them.
  • Network resiliency. Third-party providers such as Amazon and Microsoft build in network redundancies to reduce the risk of system downtime.
  • Access to new technology and system updates. Cloud providers stay competitive by continuously upgrading their hardware and systems. In addition, software updates are deployed automatically across the Cloud without the need to update individual devices.

Learn more: Delivering Transformational Business Results with CBTS and Amazon Web Services

Maintaining the security of public cloud data consumption

Security is a challenge in a public cloud environment. The user/tenant and the cloud provider are responsible for maintaining different aspects of security best practices, but each provider is slightly different. In the case of AWS, Amazon is responsible for securing the infrastructure, and clients are required to secure applications or customer data that they run through AWS.

The sentiment of many businesses is that a public cloud is less secure than a private cloud or legacy data center. However, according to McAfee, 52% of companies experience more enhanced security through cloud computing than on-premises storage. In addition, cloud providers have responded to this notion by implementing cutting-edge security measures such as encryption, zero-trust policies, permissions management, and AI-powered threat detection.

But this does not absolve users of responsibility for securing data. The best practice for public cloud tenants is to train IT staff in cloud-native security methodologies such as Zero Trust Networking.

Also read: Enhanced supply chain security and optimization through cloud computing

Selecting and implementing public cloud service

The future of public cloud growth will be exponential. Experts anticipate that the next generation of cloud technology will further the use of automation and increasingly specialized services. Additionally, quantum computing is poised to revolutionize the Cloud and how we use it in everyday life.

However, determining the best cloud strategies for your business can be overwhelming. Weighing the costs versus the benefits—as well as migrating applications, infrastructure, and business processes to the Cloud—is time-consuming and must be approached carefully.

CBTS routinely helps our clients migrate, manage, and update their technologies to get the most out of your transition. Our certified engineers and project managers guide clients through the vetted CBTS modernization process, and our consultants can advise you on the right cloud model for your business.

Get in touch to start your cloud journey today.

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