Public cloud spending to go up by 21.5% at $723 b in 2025: Gartner

Global end-user spending on public cloud services is expected to surge by 21.5 per cent in 2025, reaching a total of $723.4 billion as against $595.

7 billion last year, according to research firm Gartner, Inc. Gartner also highlighted the growing popularity of Cloud Infrastructure and Platform Services (CIPS) offerings, driven by the demand for simplified development and deployment processes. It expects end-user spending on CIPS to grow 24.



2 per cent in 2025 to reach $301 billion. In 2025, CIPS offerings are projected to account for 72 per cent of IT spending on IaaS and PaaS, up from 70 per cent in 2022. The report attributes this significant growth to the accelerating use of AI technologies in business operations and the increasing adoption of hybrid cloud strategies.

Gartner predicts that 90 per cent of organisations will embrace a hybrid cloud approach by 2027. “The use of AI technologies is undeniably accelerating the role of cloud computing in supporting business operations and outcomes,” Sid Nag, Vice-President Analyst at Gartner, said. “Cloud use cases continue to expand with an increasing focus on distributed, hybrid, cloud-native, and multi-cloud environments,” he said.

The most urgent GenAI challenge to be addressed over the next year will be data synchronisation across the hybrid cloud environment. All segments of the cloud market are expected to experience double-digit growth in 2025. The rise of industry-specific and vertical-specific GenAI models, which require advanced training and fine-tuning, is expected to further drive public cloud spending.

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