According to a recent report by Gartner, the demand for cloud services is reaching new heights as spending is projected to surge in the coming years. The research forecasts that global end-user spending on public cloud services will hit $723.420 billion in 2025, indicating a substantial 21.4% increase from the previous year. Cloud Application Services (SaaS) are predicted to see a significant boost, with expenditures expected to reach $299.1 billion in 2025. Additionally, Cloud System Infrastructure Services (IaaS) and Platform-as-a-Service (PaaS) are also anticipated to experience notable growth, reaching $211.9 billion and $208.6 billion, respectively.

However, desktop-as-a-service (DaaS) is not expected to see the same level of growth, with projections estimating a contribution of just $3.85 billion to the total in 2025. The market dynamics of cloud infrastructure spending present challenges in predicting exact figures due to the flexibility of turning capacity on and off easily. The Next Platform suggests that Cloud Infrastructure and Platform Services (CIPS) are becoming increasingly interconnected, representing a significant portion of total revenues in the cloud market. Sid Nag, Vice President Analyst at Gartner, highlights the acceleration in AI technology adoption and its impact on cloud computing, further emphasizing the expansion of cloud use cases. Hybrid cloud environments are also anticipated to become mainstream, with an expected adoption rate of 90% by 2027.