Public Cloud End-User Spending to Total $723 Billion in 2025

Worldwide end-user spending on public cloud services is forecast to total $723.4 billion in 2025, up from $595.7 billion in 2024, according to Gartner. The company predicts that 90% of organizations will adopt a hybrid cloud approach through 2027, and the most urgent GenAI challenge necessary to address over the next year will be data synchronization across the hybrid cloud environment.

“The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes,” said Sid Nag, Vice President Analyst at Gartner. “Cloud use cases continue to expand with an increasing focus on distributed, hybrid, cloud-native, and multicloud environments supported by a cross-cloud framework, making the public cloud services market achieve a 21.5% growth in 2025.”

Overall, all segments of the cloud market are expected to record a double-digit growth rate in 2025 highlighting how I&O leaders are pressured to effectively integrate I&O into their GenAI strategies and prepare for running AI and GenAI infrastructure at the edge. The growth of industry and vertical-specific GenAI models which are curated, private, and secure, and require advanced training, inferencing, and fine-tuning, will continue to drive the growth of public cloud services spending globally.

In 2025, organizations will increasingly be attracted to the efficiencies of cloud infrastructure and platform services (CIPS) offerings. Gartner defines the CIPS market as a full-featured platform in which IaaS and PaaS capabilities are delivered as integrated cloud services. Furthermore, the cross-cloud integration framework (CCIF) that makes multicloud a reality will be a key driver of the CIPS adoption model. For example, organizations will demand cross-cloud federated GenAI capabilities to service advanced AI workloads and use cases.

“Organizations are choosing CIPS because workloads of today are complex, and organizations are seeking integrated platforms to simplify development, deployment, and operations. Organizations deploying a multicoud adoption model, which is still recording growth, are also driving spend on CIPS,” said Nag.