So there’s no doubt things are a bit harder for everyone in SaaS and Cloud right now. A few of us are seeing no macro impacts, but probably the biggest tell are Cloud platform giants — AWS, Azure and Google Cloud. All are still growing at very strong rates. But all are growing more slowly than a year ago, and even more so than 2 years ago.
But they are still growing. The Cloud is still growing. SaaS spend is still growing. It’s harder to access that spend, but it’s hardly shrinking:
Cloud Giants Update
AWS (Amazon): $85B run rate growing 16% YoY (last Q grew 20%)
Azure (Microsoft): ~$60's billion run rate (estimate) growing 31% YoY (last Q grew 38%)
Google Cloud (includes GSuite): $30B run rate growing 28% YoY (last Q grew 32%, neither are cc)
— Jamin Ball (@jaminball) April 27, 2023
How much? Well, Gartner has its latest report and predictions out. They see overall SaaS spend still growing a very healthy 18% in 2023 to almost $200 Billion Worldwide in 2023. And after interviewing 100s of CIOs and CXOs, it still sees SaaS growing another 18% in 2024 to $232 Billion a year:
There’s no question that inflation, infrastructure costs, and vendor consolidation will take up a lot of this increase. But budgets are still there. Even if we have to do a lot more, and prove a lot more, to access them.
The post Gartner: SaaS Will Still Grow 18% in 2023 to $200 Billion Worldwide. And Another 18% in 2024. appeared first on SaaStr.
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Jason Lemkin, Khareem Sudlow
