Cloud Demand Will Grow, Even in a Slowing Economy

Even as organizations become more attentive to their cloud spending, they won’t cut their outlay significantly.

“The public cloud computing sector will continue to grow over 20% in 2023 (and IaaS and PaaS in particular will grow over 30%) as companies realize they lack the in-house resources to support infrastructure, rapidly evaluate a variety of low-level computing services, and deal with security and governance concerns. This means that fully managed service offerings will become more attractive as customers seek functionality and value while dealing with the uncertainties of layoffs, office closings and moves, mergers and acquisitions, and the need to demonstrate a rapid payback period for any new service.” —Hyoun Park, CEO and Chief Analyst, Amalgam Insights

“Cloud will be the great innovation driver in an economic downturn. Companies that had adopted cloud prior to the COVID-19 pandemic fared better than those who hadn’t in terms of their ability to quickly pivot their business models and capitalize on new opportunities and revenue streams. The same will hold true in an economic downturn. Cloud adoption provides the quickest path to innovation and gives companies much more flexibility to run their businesses in hard times.” —Harish Grama, global cloud practice leader, Kyndryl