Gartner forecasts that public cloud end user spending will reach nearly $600 billion by the end of 2023. The market research firm says public cloud services will continue in 2022, and nearly capture $494.7 billion in global spending this year – up from $410.9 billion in 2021. That represents a 20.4% increase in spending from 2021.
“Cloud is the powerhouse that drives today’s digital organizations,” said Sid Nag, research vice president at Gartner. “CIOs are beyond the era of irrational exuberance of procuring cloud services and are being thoughtful in their choice of public cloud providers to drive specific, desired business and technology outcomes in their digital transformation journey.”
Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1% (see Table 1). The new reality of hybrid work is prompting organizations to move away from powering their workforce with traditional client computing solutions, such as desktops and other physical in-office tools, and toward DaaS, which is driving spending to reach $2.6 billion in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6 billion in spending.
Table 1. Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)
|Cloud Business Process Services (BPaaS)||51,410||55,598||60,619|
|Cloud Application Infrastructure Services (PaaS)||86,943||109,623||136,404|
|Cloud Application Services (SaaS)||152,184||176,622||208,080|
|Cloud Management and Security Services||26,665||30,471||35,218|
|Cloud System Infrastructure Services (IaaS)||91,642||119,717||156,276|
|Desktop as a Service (DaaS)||2,072||2,623||3,244|
BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service. Note: Totals may not add up due to rounding. Source: Gartner (April 2022)
“Cloud native capabilities such as containerization, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditized compute such as IaaS or network-as-a-service,” said Nag. “As a result, they are generally more expensive which is fueling spending growth.”
SaaS remains the largest public cloud services market segment, forecasted to reach $176.6 billion in end-user spending in 2022. Gartner expects steady growth within this segment as enterprises take multiple routes to market with SaaS, for example via cloud marketplaces, and continue to break up larger, monolithic applications into composable parts for more efficient DevOps processes.
Emerging technologies in cloud computing such as hyperscale edge computing and secure access service edge (SASE) are disrupting adjacent markets and forming new product categories, creating additional revenue streams for public cloud providers.
“Driven by maturation of core cloud services, the focus of differentiation is gradually shifting to capabilities that can disrupt digital businesses and operations in enterprises directly,” said Nag. “Public cloud services have become so integral that providers are now forced to address social and political challenges, such as sustainability and data sovereignty.
“IT leaders who view the cloud as an enabler rather than an end state will be most successful in their digital transformational journeys,” said Nag. “The organizations combining cloud with other adjacent, emerging technologies will fare even better.”
Gartner clients can read more in Forecast: Public Cloud Services, Worldwide, 2020-2026, 1Q22 Update. Lean more in the complimentary Gartner webinar Cloud Computing Scenario: The Future of Cloud.
Microsoft and Telefonica Tech, Telefonica’s digital business unit, has signed a new deal with Microsoft, to supply confidential hybrid cloud services to public administrations and companies in regulated sectors. The focus will be on monitoring and encryption services to ensure the security and privacy of data in Microsoft Azure, Microsoft 365 and Microsoft Dynamics 365.
- The joint solutions of both companies will enable Spanish public administrations and companies in regulated sectors to respond to the needs of digital sovereignty.
- Telefónica Tech and Microsoft meet the most demanding legal and technical requirements for cloud trust principles, guaranteeing them with Microsoft’s Confidential Computing technology and Telefónica Tech’s cyber threat monitoring and management capabilities.
- Telefónica Tech will provide professional and managed advisory, implementation, and operational services to deploy and operate the cloud services, which will be marketed through Telefónica Empresas.
Under the latest agreement, Microsoft will deliver its privacy safeguards, technologies and certifications. The company has high-level National Security Scheme certification for Azure, Microsoft 365 and Dynamics 365 and has made a contractual commitment to legally oppose access to its enterprise and public sector customer data by any government. Microsoft has also announced the EU Data Boundary initiative to allow customers to store and process their personal data within the EU. This commitment applies to Microsoft Azure, Microsoft 365 and Dynamics 365 cloud services.
Telefonica Tech will provide consultancy, implementation and operation services that will enable the deployment of maximum security cloud services, guaranteeing compliance with information privacy, quality of service and regulatory compliance requirements at all times. The company will also deliver value-added services, such as the intelligent management of communications and infrastructures or the monitoring and management of cyber threats from its Cybersecurity Operations Centre, with the aim of guaranteeing a rapid and secure adoption of cloud services by the different organisations and institutions. It will in addition offer specialised consulting services for the design, deployment and operation of Big Data platforms on Microsoft Azure Cloud capabilities. Finally, specific services will be supplied to the Defence sector. These will include 5G connectivity services offered by Telefonica with Microsoft cloud services.
All of the services will be implemented in Microsoft’s current cloud environments and will be complemented by the upcoming availability of the new Cloud Region that Microsoft will open in Spain.
Telefonica joined Microsoft and Repsol in June to create an artificial intelligence consortium focused on the industrial sector in Spain.
Telefonica and Microsoft partnered in May to jointly develop private 5G connectivity and on-premises edge computing services for the industrial sector. The partners will now provide public sector organizations, including Defense, with cloud computing and infrastructure services to advance their digital transformation plans, while complying with data protection provisions and recommendations defined by the European Data Protection Board (EDPB).
José Cerdán, CEO of Telefónica Tech, assures: “We believe that the alliance between Microsoft and Telefónica represents a giant step forward in enabling the digital transformation of the public sector and, in general, of the country. The combination of Microsoft’s technology with Telefónica’s service, management and control capabilities guarantees sovereignty and privacy as well as scalability and evolution of infrastructure and citizen services, all with the highest level of quality“.
Alberto Granados, president of Microsoft Spain, remarks: “We at Microsoft have long demonstrated our commitment to meeting and exceeding the data protection requirements of the European Union. This joint value proposition with Telefónica to provide confidential hybrid cloud solutions responds to the needs of digital sovereignty and is evidence that we continue to advance this commitment.”
Regarding this alliance, Carme Artigas, Secretary of State for Digitalization and Artificial Intelligence, points out: “The proposal of confidential public cloud solutions together with hybrid cloud designed specifically for public administrations and companies in regulated sectors in Spain, responds to the important objective of digital sovereignty and constitutes a very relevant advance to accelerate the digitalization of our economy.”
Microsoft was the first hyperscale cloud provider to achieve certification for compliance with the high level of the National Security Scheme in 2016, demonstrating the company’s commitment to delivering cloud products with the highest security requirements. This certification is available for all three Microsoft public clouds: Microsoft Azure, Microsoft 365 and Dynamics 365. It has also been the first to provide Confidential Computing services working with Intel and AMD. These Microsoft cloud services add in-use protection to existing protections for data in transit and at rest, ensuring maximum privacy. In addition, the company offers advanced encryption services that complement the base encryption measures, allowing the implementation of encryption systems using keys provided and managed by the customer or a third party, in this case Telefónica, and managed and dedicated hardware security module (HSM) services.
Telefónica Tech, through its capabilities and experience, accelerates the implementation of technology through its Cybersecurity, Cloud, IoT, Big Data, Artificial Intelligence and Blockchain services. It has 12 specialized Digital Operations Centers (DOC) with 24×7 services from where more than 30,000 servers are managed and more than 100 million cybersecurity events per year are monitored. It also has more than 3,000 expert professionals with the highest certifications in cloud services and cybersecurity who serve the Telefónica Group’s 5.5 million B2B customers in 175 countries.
VMware has announced new advancements for VMware Cloud on AWS [1.], a multi-cloud computing infrastructure. The new innovations include a new portfolio of managed Kubernetes services to modernize apps on VMware Cloud. The new functions will make it simpler and safer to run enterprise apps in VMware Cloud. This new VMware initiative supports the need for customers to run their IT software in sovereign clouds, as well as technology previews that showcase the future of VMware Cloud.
Note 1. VMware Cloud on AWS is the preferred service for AWS for all vSphere-based workloads [2.]. VMware Cloud on AWS brings VMware’s enterprise-class SDDC (Software Defined Data Center) [3.] software to the AWS Cloud with optimized access to native AWS services. Powered by VMware Cloud Foundation, VMware Cloud on AWS integrates VMware’s compute, storage, and network virtualization products (VMware vSphere, VMware vSAN, and VMware NSX [4.]) along with VMware vCenter Server management, optimized to run on dedicated, elastic, bare-metal AWS infrastructure.
VMware Cloud on AWS uses NSX-T to create and manage internal SDDC (Software Defined Data Center) networks and provide endpoints for VPN connections from the customer’s on-premises network infrastructure. This subnet is used by the vCenter, NSX, and HCX appliances in the SDDC.
Note 2. vSphere is a server virtualization software application from VMware. It debuted in 2009 as the successor to the company’s flagship VMware Infrastructure solution and serves as a complete platform for implementing and managing virtual machine (VM) infrastructure on a large scale.
Note 3. A SDDC network has two notional tiers:
- Tier 0 handles north-south traffic (traffic leaving or entering the SDDC, or between the
Management and Compute gateways).
- Tier 1 handles east-west traffic (traffic between routed network segments within the SDDC).
Note 4. NSX is a network virtualization and security platform that enables the virtual cloud network, a software-defined approach to networking that extends across data centers, clouds and application frameworks.
The company said that together, the innovations will give VMware Cloud customers more tools to accelerate modernization of their enterprise apps, increase business agility and resiliency, and significantly reduce costs compared to existing approaches.
VMware Cloud on AWS is an integrated cloud offering jointly developed by Amazon Web Services (AWS) and VMware.
VMware Cloud with Tanzu services (see illustration below) is a new portfolio of managed Kubernetes services that will be available at no additional charge as part of VMware Cloud on AWS (see illustration above), for enterprise-grade Kubernetes on a fully managed, hybrid-cloud ready Infrastructure as a Service (IaaS) for all enterprise applications.
IT admins will be able to use the VMware vCenter interface to unify VM and container management on a common platform and provision Kubernetes clusters within minutes. Platform operators or SREs will be able to manage Kubernetes clusters consistently across clouds using Tanzu services as a multi-cloud Kubernetes management plane.
VMware Cloud with Tanzu services
Tanzu services include the following capabilities:
- Managed Tanzu Kubernetes Grid Service: ision Tanzu Kubernetes clusters within a few minutes using a simple, fast, and self-service experience in the VMware Cloud console. The underlying SDDC infrastructure and capacity required for Kubernetes workloads is fully managed by VMware. Use vCenter Server for managing Kubernetes workloads by deploying Kubernetes clusters, provisioning role-based access and allocating capacity for Developer teams. Manage multiple TKG clusters as namespaces with observability, troubleshooting and resiliency in vCenter Server.
- Built in support for Tanzu Mission Control Essentials: Attach upstream compliant Kubernetes clusters including Amazon EKS and Tanzu Kubernetes Grid clusters. Manage lifecycle for Tanzu Kubernetes Grid clusters and centralize platform operations for Kubernetes clusters using the Kubernetes management plane offered by Tanzu Mission Control. Tanzu Mission Control provides a global visibility across clusters and clouds and increases security and governance by automating operational tasks such as access and security management at scale.
Tanzu services on the VMware Cloud on AWS platform brings together the three personas working on modern applications. vSphere Administrators manage virtual machines on-premises and in the cloud and allocate resources for platform operators to deploy workloads. The operators use Tanzu Mission Control to manage and maintain clusters across environments. Developers can create code using a flexible platform for container and virtual machine-based workloads.
The managed Tanzu Kubernetes Grid Service, which is one of the Tanzu services, will enable admins to provision Tanzu Kubernetes clusters within a few minutes using a simple, fast, and self-service experience in the VMware Cloud console.
- The underlying SDDC (Software Defined Data Center) infrastructure and capacity required for Kubernetes workloads is fully managed by VMware. Use vCenter Server for managing containerized workloads by deploying Tanzu Kubernetes Grid clusters, provisioning role-based access and allocating capacity for Developer teams.
- One can manage multiple TKG clusters as namespaces with observability, troubleshooting and resiliency in vCenter Server.
HUAWEI CLOUD [1.] announced today that it will launch partner programs in Latin America and the Caribbean, such as the Spark Program, which provides a fund of $10 million for startup innovation, and the Huawei Mobile Services (HMS) Ecosystem Program, which provides a fund of $10 million to enable app developers and partners to improve cloud experience.
Note 1. HUAWEI CLOUD provides a powerful computing platform and easy-to-use development platform to support Huawei’s full-stack, all-scenario AI strategy.
From August 25 to September 3, HUAWEI CLOUD is celebrating its second anniversary in Latin America with a series of activities. HUAWEI CLOUD and its customers and partners will share experiences in digital transformation and intelligent upgrade.
The event includes a series of releases, covering distributed cloud, cloud native, big data, AI, and video service. The following cloud services are launched for the first time in Latin America: Intelligent EdgeCloud (IEC), Intelligent EdgeFabric (IEF), KYON (Keep Your Own Network), FunctionGraph 2.0, Multi-Cloud Container Platform (MCP), Application Service Mesh (ASM), Container Guard Service (CGS), GaussDB database, ModelArts Pro (AI development platform for enterprises), and Cloud-native Video Service. These powerful offerings help Latin American customers simplify connections, deployment, data analysis, AI adoption, and service rollout, facilitating their digital transformation.
Four Initiatives to Accelerate Digital Transformation and Intelligent Upgrade:
“Cloud is the core of the ICT industry and a key driving force for industry digitalization,” said Mr. Zhang Ping‘an, Senior Vice President of Huawei, CEO of Huawei Cloud BU, and President of Huawei Consumer Cloud Service. “HUAWEI CLOUD values the strategy of building a global presence within local reach. Latin America is one of the most important emerging markets for cloud computing. HUAWEI CLOUD has been investing heavily in this market and has achieved rapid growth,” Mr. Zhang Ping‘an continued. “Going forward, we will strengthen our support for the digital transformation and intelligent upgrade of our customers in Latin America through four initiatives: continuous tech innovation, joint outreach by HUAWEI CLOUD & Huawei Mobile Services, Global + Local services, and high-quality business ecosystems. We invite more partners to join. Together, we will build a robust digital ecosystem around the world and lay the cloud foundation for an intelligent world.”
Continuous tech innovation: Drawing on Huawei’s rock-solid foundation built by 80,000 R&D engineers and an annual investment of 15 billion US dollars into R&D, HUAWEI CLOUD continues to innovate in cloud native, AI, and big data, delivering global cloud services with compelling elasticity, performance, and consistency.
Joint outreach by HUAWEI CLOUD & Huawei Mobile Services (HMS): This cloud-cloud synergy initiative enables deep collaboration between HUAWEI CLOUD and Huawei Consumer Cloud for media, audio-visual, finance, industrial interconnection, and medical education. The synergy aims to deliver consistent technologies and experience for developers and partners via unified accounts, development platforms, and application distribution and operation.
Global + Local services: HUAWEI CLOUD has built 45 availability zones (AZs) in 23 regions around the world. Over the past year, HUAWEI CLOUD has continuously invested in Latin America, bringing the second region online in Mexico and adding two new AZs in Brazil and Chile. As of today, HUAWEI CLOUD operates three core regions in Chile, Brazil, and Mexico, and two country-level regions in Argentina and Peru, with eight AZs in total. HUAWEI CLOUD has the largest number of nodes in Latin America and the Caribbean. The unrelenting resource investment helps provide customers with stable, efficient, and low-latency cloud service experience.
High-quality business ecosystem: HUAWEI CLOUD has more than 20,000 partners, including consulting, SaaS, and software partners. In the process of global deployment, HUAWEI CLOUD has focused on building a multi-dimensional global ecosystem and complementing the advantages of different regions to create maximum value for customers. In the future, HUAWEI CLOUD will engage with more partners in Latin America and bring the experience in other regions of the world to create shared success for all.
Continuous Investment in Latin America and Increased Support for Partners
“We position our company not only as a provider of leading cloud infrastructure and services, but also a long-term business partner in Latin America, as well as a responsible corporate citizen,” said Fernando Liu, President of Latin America Cloud Business Dept, Huawei. “As a cloud service provider with the largest number of nodes and the fastest growth in Latin America, HUAWEI CLOUD will continue to invest more in Latin America with more local nodes, new solutions, and partner support. We are dedicated to bringing the latest technology to Latin America.”
Fernando Liu also stressed HUAWEI CLOUD’s belief in a co-created ecosystem of shared success, as HUAWEI CLOUD works with partners to take digital transformation and intelligent upgrade to new heights in Latin America. At the two-year anniversary, HUAWEI CLOUD is launching a series of support initiatives for HMS partners, SaaS partners, and start-ups.
- Spark Program: A fund of USD10 million to encourage and support innovation by start-ups in Latin America.
- HMS Ecosystem Program: A fund of USD10 million to enable developers and partners to launch applications on Huawei AppGallery. The program also helps them better experience device-cloud synergy based on the HUAWEI CLOUD platform.
- Service Partner Program: Provides additional incentives for consulting partners who pass the Service Capability Certification (SCC).
- SaaS Partner Program and Marketplace Program: Focused technical and commercial policies to support technical partners and help them develop solutions based on HUAWEI CLOUD. The Marketplace Program supports the partners throughout the sales cycle, helping them achieve greater business success.
Since 2019, HUAWEI CLOUD has worked with more than 1000 consulting partners and 200 technical partners in Latin America, covering 14 Latin American countries, propelling Latin America towards digital transformation and intelligent upgrade in logistics, manufacturing, transportation, retail, education, and telecommunications.
IBM’s Cloud Satellite service is now in generally available (GA) orbit. The service extends the IBM Cloud control plane to run virtually anywhere, whether that be on commodity hardware, some edge device, or inside another public cloud.
IBM manages Cloud Satellite deployments, which is different than from most other software-defined hybrid cloud platforms. It provides an administrative control plane and as-a-service operation of IBM cloud services using a Kubernetes (K8s) cluster.
IBM explained that the GA push now makes the platform available to all customers. It allows users to run their IBM Cloud service on-premises or in edge locations managed through a single pane of glass in the public cloud.
IBM’s not alone in looking to data as one of the first services to be offered on hybrid. Amazon Outposts offers RDS for MySQL and PostgreSQL; Azure Arc data services include SQL Managed Instance and PostgreSQL Hyperscale; while Google recently added BigQuery Omni to its Anthos software-defined hybrid cloud as part of a multi-cloud and edge play.
The rationale as to why data services are so elemental to hybrid cloud is that, for many organizations or use cases, data needs to stay local for reasons ranging from latency issues to data residency requirements. OpenShift as a service will provide a route for customers seeking to build their own private cloud K8s environments. IBM is announcing that this will also be early on the list.
As part of this collaboration, customers will be able to:
- Deploy applications across more than 180,000 connected enterprise locations on the Lumen network to provide a low latency experience
- Create cloud-enabled solutions at the edge that leverage application management and orchestration via IBM Cloud Satellite
- Build open, interoperable platforms that give customers greater deployment flexibility and more seamless access to cloud native services like AI, IoT and edge computing
IBM said it has more than 65 “ecosystem partners” building services to run in the Cloud Satellite environment. Partner include Cisco, Dell Technologies, and Intel. They intend to develop cloud services which can run across the multi-cloud and premises platform services include storage, networking, and server options.
“IBM is working with clients to leverage advanced technologies like edge computing and [artificial intelligence], enabling them to digitally transform with hybrid cloud while keeping data security at the forefront,” said Howard Boville, Head of IBM Hybrid Cloud Platform, in a statement. He added that “clients can securely gain the benefits of cloud services anywhere, from the core of the data center to the farthest reaches of the network.”
IBM highlighted three partners, among them Lumen Technologies and Portworx, that are both heavily leveraging 5G to deliver PaaS services for edge computing, and F5, which is developing vertical solutions for banking institutions.
IBM noted that Lumen Technologies (formerly CenturyLink) was using the hybrid cloud platform to deliver its Edge Compute service. That capability relies on Red Hat’s OpenShift that runs within Cloud Satellite to host the applications running close to Lumen’s edge locations. Lumen touts that it has approximately 450,000 route fiber miles in its network spread across more than 60 countries.
Lumen struck a similar deal earlier this year with VMware that will see both vendors “fast-track the design, development, and delivery of edge computing and more secure, work-from-anywhere solutions.”
Does anyone remember IBM’s Satellite Business Systems (SBS) of the late 1970s? It was a pioneer in delivering data services to businesses as a precursor of the Internet.
IBM Cloud Satellite: Build faster. Securely. Anywhere. Now generally available. To get started, visit: https://www.ibm.com/cloud/satellite.
For more information on how IBM is working with its ecosystem of partners, visit: www.ibm.com/cloud/blog/ibm-partner-ecosystem-and-cloud-satellite
For more information on IBM Cloud Pak for Data as a Service, visit:
For more information on how IBM is helping developers build on IBM Cloud Satellite, visit:
For more information on how IBM Cloud Satellite is supported by IBM Storage, visit: www.ibm.com/blogs/systems/improve-it-infrastructure-with-ibm-hybrid-cloud-storage-for-ibm-cloud-satellite
For more information on IBM Global Technology Services capabilities for IBM Cloud Satellite, visit: ibm.biz/PC_IaaS
To learn more about how Lumen has integrated Cloud Satellite across 180K global edge locations, visit: https://blog.lumen.com/speeding-innovation-at-the-edge-with-lumen-technologies-and-ibm-cloud-satellite
For further information visit: www.ibm.com/cloud/