Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach $679 Billion in 2024
Worldwide end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023, according to the latest forecast from Gartner.
“Cloud has become essentially indispensable,” said Sid Nag, Vice President Analyst at Gartner. “However, that doesn’t mean cloud innovation can stop or even slow. The tables are turning for cloud providers as cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models.”
“For example, organizations deploying generative AI (GenAI) services will look to the public cloud, given the scale of the infrastructure required,” added Nag. “However, to deploy GenAI effectively, these organizations will require cloud providers to address nontechnical issues related to cost, economics, sovereignty, privacy, and sustainability. Hyperscalers that support these needs will be able to capture a brand-new revenue opportunity as GenAI adoption grows.”
Gartner expects all segments of the cloud market to see growth in 2024. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2024 at 26.6%, followed by platform-as-a-service (PaaS) at 21.5%.
Another key trend driving cloud spending is the continued rise of industry cloud platforms. Industry cloud platforms address industry-relevant business outcomes by combining underlying software-as-a-service (SaaS), PaaS and IaaS services into a whole-product offering with composable capabilities. Gartner predicts that by 2027, more than 70% of enterprises will use industry cloud platforms to accelerate their business initiatives, up from less than 15% in 2023.
“GenAI adoption will also support the growth in industry cloud platforms,” said Nag. “GenAI models that are applicable across diverse industry verticals might require significant customization, affecting scalability and cost-effectiveness. Public cloud providers can position themselves as partners in the responsible and tailored adoption of GenAI by building on the same approaches applied to industry clouds, sovereign clouds, and distributed clouds.”
Gartner clients can learn more in “Forecast: Public Cloud Services, Worldwide, 2021-2027, 3Q23 Update.”
Historically, the need for customization, as predicted by Nag, has always been a strong driver of opportunity for the channel.
Cisco Enhances Partner Program to Provide Additional Rewards
Cisco has announced new features, enhancements, and tools to its partner program, providing additional rewards for partners selling Cisco hardware, software, and as-a-service solutions. The San Jose-based company also plans to add up to six new Solution Specializations within the next nine months.
“The Cisco Partner Incentive is the biggest change we’ve made to partner incentives in more than a decade and is the capstone on the Cisco Partner Program evolution started in 2020,” said Marc Surplus, Vice President of Partner Strategy and Programs at Cisco. “In broadening Cisco’s suite of Solution Specializations, we are helping our partners differentiate in the market and demonstrate their expertise in the technologies and solutions sought by customers.”
The Cisco Partner Incentive will reward partners with rebates to drive predictable and profitable growth. The incentive will specifically support new logo acquisition, up-sell, and cross-sell opportunities. Implemented in a phased approach, the Cisco Partner Incentive is expected to begin in the second half of 2024.
Meanwhile, the Partner Experience Platform (PXP) has been augmented with AI/ML-powered predictive insights, providing information intended to help partners differentiate their offerings. PXP is also gaining a new Sustainability Estimator, exclusively available to Environmental Sustainability Specialized partners. This tool is designed to provide partners insight into the estimated energy savings, emissions reduction, cost reduction and environmental impact that a customer may realize by modernizing their IT hardware.
To enable Managed Services Providers (MSPs) to deliver a premium support experience, Cisco has launched Partner Advanced Support for MSPs with the added benefit of guided access to API integrations that build on MSPs’ existing services. Through this expansion, the company hopes to help MSPs offer faster, multi-product support, predictive insights, and issues resolution to scale an outcomes-based service model.
Cisco also plans to launch two new Internet of Things (IOT) Solution Specializations in the first half of 2024. These initiatives focus on the ruggedized industrial IOT segments and expanded recognition for partners working in non-industrial IOT spaces.
The enhancements were rolled out at Cisco’s recent partner summit, and are intended to drive partner profitability and differentiation.
Check Point Software Adds New Pricing Model to MSSP Program
Check Point Software has enhanced its MSSP Partner Program, attempting to simplify security services in an era of workforce shortages and the relentless rise in digital threats.
“MSSPs have a big opportunity to capitalize on the demand for their services, but they face their own challenges in a rapidly changing world, “said Shahar Divon, Head of Global SMB Sales at Check Point Software Technologies. “We have now streamlined the business model and simplified the onboarding process, making it easier for partners of any size to access our innovative products and scale their operations as needed.”
In addition to administrative improvements, the company has launched a consumption-based pricing model with fixed, pay-as-you-go, and tiered options, delivering additional financial flexibility for partners.
Check Point also offers free training for partners to swiftly manage licenses via the company’s partner portal, with distributor support enabling MSSPs to start the sales process more quickly.
Partners are also granted access to the company’s latest managed security services across all vectors, including SASE, email security, cloud, SD-WAN, and mobile security. The program encompasses security services across all attack vectors.
The enhancements are intended to demonstrate Check Point’s dedication to empowering MSSPs with advanced tools and services.