Tech-centric management consultancy Gartner just released its latest forecast for the technology trends to look out for in 2023, and among them is that cloud migration will continue throughout much of the coming year.
This forecast was made based on the way cloud technology sales have surged upward for industry leaders Amazon Web Services, Google Cloud, and Microsoft Azure throughout this year. If the trend continues, Gartner expects that global spending on public cloud services could hit $592 billion by the end of next year..
Such a high target would mean annual growth would grow by around 21%. As of the end of the third quarter of this year, spending for public cloud services is now at $490 billion.
Gartner vice-president and analyst Sid Nag noted that inflationary pressure and current macroeconomic issues have had a push and pull effect on corporate cloud spending. But Nag admits that, compared to more conventional network setups, cloud computing is seen as a much safer alternative that is marked by innovation.
Cloud computing also supports growth even in difficult times like those we’re currently in as it is agile, elastic, and scalable compared to other storage and deployment platforms.
What Will Companies Invest in Next Year and What Challenges Will They Face?
Cloud-deployed software as a service (SaaS) solutions is expected to take a lion’s share of spending next year, possibly earning $195 billion globally. This represents a 17% increase in SaaS spending compared to its figures for this year.
However, Gartner also believes that the SaaS sector could be significantly impacted by inflation, mostly because of the way companies need to focus on their profit margins in light of the looming recession.
Staffing challenges will pose another issue for the SaaS scene as more skilled employees will be needed to develop more innovative solutions and products. However, such employees will need to be on a higher pay scale – something that many companies probably won’t be able to afford in the coming months.
According to Gartner vice-president and analyst David Groombridge, simply delivering new technologies will not be enough to sustain growth in the cloud computing sector. That said, other trends that should be anticipated in 2023 is the increased emphasis on system optimization, scalability, and innovation.
Companies will likewise need to manage their spending to mitigate the impact that a potential economic recession may have on them, as well as factors like supply chain issues and the effect the ongoing energy crisis may have on their operations.