In the evolving landscape of cloud GTM, 2023 has been a pivotal year. Let's explore 💡 key trends that are shaping the direction of cloud GTM and marketplaces for 2024 in this new series of posts.
📈 Cloud's Unstoppable Growth
Despite a focus on optimizing cloud spend in 2023, the cloud's upward trajectory remains strong. IDC estimates global public cloud services revenue to reach $663 billion in 2023, marking a 20% growth from 2022. Gartner projects a similar trend for 2024, with an expected growth rate of 20.4%.
This signifies the cloud's increasing influence across various industries. The last quarter's reports from the big three hyperscalers also showed a shift from optimization to adding new workflows, particularly driven by AI.
💎 Infrastructure Investment by Big 3 Hyperscalers Reaches $100B/Year
The commitment of Amazon Web Services (AWS), Microsoft, and Google to scaling the cloud is underscored by their substantial infrastructure investments. Tech analyst Benedict Evans notes that the top three hyperscalers' infrastructure spending in 2023 is estimated at a staggering $100 billion, approximately double their annual spend five years ago.
Cloud is not only growing but is the foundation and pre-requisite for the next wave of tech.
⚡️ Cloud in the Era of Gen AI
According to KPMG, “More and more organizations are now creating workloads that require cloud-based, gen-AI services – and therefore the public cloud.” Gen AI is part of a long-term trend of the cloud influencing the transformation of business functions. Its impact has been felt very strongly among hyperscalers – not least because it uses vast amounts of cloud computing power.
The future direction of cloud technology will largely depend on how companies adapt to using AI services, which are being deployed rapidly by hyperscalers.
🎯 Dataflow Is The New Workflow
AI can do more with data if it’s in the cloud. PwC's recent survey revealed that 44% of business leaders plan to implement data modernization efforts in 2024 to better leverage GenAI. One of key promises of Gen AI is that it can help companies turn their data into value more quickly — giving many data initiatives an attractive cost/benefit ratio that they may have lacked before.
AI can can scan, read, summarize, translate, analyze and troubleshoot even highly unstructured data that’s trapped in presentations, strategy papers, customer logs and the other documents of your organization.
The trend is clear: more companies are moving data and workflows to the cloud. With increasing numbers of customers and AI applications available through marketplaces of these cloud platforms, the dynamic ecosystem of hyperscalers is poised for further acceleration.
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