UK IT Channel News | IT Channel Oxygen
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • Sustainability
  • About Us
  • Partner with us
Members
Must-Know Distributors
Oxygen 250
No Result
View All Result
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • Sustainability
  • About Us
  • Partner with us
No Result
View All Result
UK IT Channel News | IT Channel Oxygen
No Result
View All Result
Home Market data

Why the ‘tables are turning’ on cloud hyperscalers

"Cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models," Gartner says

Oxygen staff by Oxygen staff
14 November 2023
in Market data
Why the ‘tables are turning’ on cloud hyperscalers

Image by G.C. from Pixabay

Share on LinkedinShare on Twitter

“The tables are turning” for cloud providers, Gartner has asserted, despite predicting an increase in public cloud growth in 2024.

Public cloud growth has slowed in 2023 as end users switch their attention to optimising their cloud investments. The slowdown has even fuelled a backlog in uncommitted cloud spend, while market leader AWS‘ annual rate of growth decelerated from 33% to 12% between Q2 2022 and Q3 2023.

Gartner, however, predicts that market growth will accelerate modestly again in 2024, when it expects public cloud end-user spending to rise 20.4% to $679bn.

That compares with the 17.8% growth slated for 2023.

‘The tables are turning for cloud providers’

The fact that cloud has become “essentially indispensable” doesn’t mean that cloud innovation can slow, Gartner VP Analyst Sid Nag said, however.

“The tables are turning for cloud providers as cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models,” he said.

“For example, organisations deploying generative AI (GenAI) services will look to the public cloud, given the scale of the infrastructure required.

“However, to deploy GenAI effectively, these organisations will require cloud providers to address nontechnical issues related to cost, economics, sovereignty, privacy and sustainability. Hyperscalers that support these needs will be able to capture a brand-new revenue opportunity as GenAI adoption grows.”

IaaS to grow fastest

Infrastructure as a Service (IaaS) is set to light up the market with the highest growth by cloud sub-segment in 2024, with end-user spending forecast to bulge 26.6% to $182bn.

Cloud application services (SaaS) will remain the largest sub-segment, Gartner said, with spending set to rise from $205bn to $244bn year on year.

Cloud desktop-as-service (DaaS) will see spending rise from $2.8bn to $3.2bn, meanwhile, cloud application infrastructure services (PaaS) from $145bn to $176bn and cloud business process services (BPaaS) from $66bn to $73bn.

“GenAI adoption will also support the growth in industry cloud platforms,” Nag added.

“GenAI models that are applicable across diverse industry verticals might require significant customisation, affecting scalability and cost-effectiveness. Public cloud providers can position themselves as partners in the responsible and tailored adoption of GenAI by building on the same approaches applied to industry clouds, sovereign clouds and distributed clouds.”

Tags: featuredGartner
Previous Post

Advania hunts VAR acquisition following UK rebrand

Next Post

Meet the MSP marketing ace who quit £275,000 job to start new agency

Related Posts

Antonio Neri, HPE and Rami Rahim, Juniper
M&A

“Every partner is super-excited” – 6 sizzling soundbites as HPE closes Juniper acquisition

2 July 2025
5 talking points as Bytes issues FY24 and share storm updates
Partner

Bytes Technology Group eyes H2 bounce-back as profit warning buffets shares

2 July 2025
Safra Catz, Oracle
Deal Wins

WHO IS IT? Oracle strikes mystery $30bn-a-year cloud deal

1 July 2025
Nick Ross, Wiz
Cybersecurity

‘A whirlwind’ – Wiz ‘well on way’ to 100% channel

1 July 2025
14 most significant cyber-attacks of 2025 so far – with a twist…
Cybersecurity

14 most significant cyber-attacks of 2025 so far – with a twist…

30 June 2025
Dave Stevinson, QBS Software, with EMT team
M&A

QBS Software CEO reveals off-market ploy following 15th acquisition

27 June 2025
World’s largest audio-visual integrator, AVI-SPL, swaps owners
M&A

World’s largest audio-visual integrator, AVI-SPL, swaps owners

26 June 2025
Patrick Zammit and Rich Hume, TD Synnex
Distributor

‘We’re in the middle of it’, TD Synnex CEO says of PC refresh amid Q2 bonanza

24 June 2025
Next Post
Jay Janes, xpandly

Meet the MSP marketing ace who quit £275,000 job to start new agency

Follow Us

IT Channel Oxygen keeps you informed on the UK IT channel and its sustainable transformation. Learn more

  • About
  • Our Team
  • Partner with us
  • Privacy Policy
  • Terms & Conditions
  • News
  • Cookie Policy (UK)

© 2025 IT Channel Oxygen

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
No Result
View All Result
  • Oxygen 250
  • Must-Know Distributors
  • Member area
  • KOcycle Zone
  • Big Interview
  • News
  • Indepth
  • About
  • Partner with us

© 2025 IT Channel Oxygen