Cloud computing revenues set to grow to $2 trillion by 2030
Goldman Sachs: Amid GenAI boom
According to a new report from Goldman Sachs Research, cloud computing revenues are projected to skyrocket to $2 trillion by the end of the decade, driven by the growing field of Generative Artificial Intelligence (GenAI/GAI).
The report, authored by Kash Rangan, head of US software research at Goldman Sachs, anticipates a robust 22% compound annual growth rate for cloud services from 2024 through 2030.
GenAI alone is forecast to contribute $200 billion to $300 billion as investments extend beyond significant tech giants and foundational model providers to a broader array of companies.
Rangan highlights that the current market for cloud computing is significantly underpenetrated, with only about 30% of workloads having transitioned to the cloud.
This untapped potential and a surge in digital transformation and cloud modernisation efforts are expected to fuel substantial revenue growth. The cloud market more than doubled between 2019 and 2023, reaching $496 billion, reflecting a 26% annual growth rate.
GenAI, predicted to become a key driver in cloud revenue growth, is anticipated to expand its presence across a broader range of industries.
Strong investment
Despite fluctuating investor sentiment—from enthusiastic forecasts to cautious scepticism—investment in GenAI remains strong.
Goldman Sachs Research’s IT decision-makers survey reveals an anticipated budget allocation increase for GenAI. Respondents project that 9% of their budgets will be dedicated to this technology in three years, up from 7% in a January 2024 survey.
As the cloud sector prepares for this explosive growth, the evolving landscape of AI and digital transformation promises to reshape the industry, making it a pivotal arena for innovation and investment.
GenAI refers to algorithms that create new content—text, images, or music—by learning from existing data. The technology leverages machine learning models to generate original, contextually relevant outputs, transforming industries from creative arts to technology by enhancing productivity and innovation through advanced, automated content creation.
EVOLVE24
Cloudera is hosting the Dubai edition of EVOLVE24, a global series of conferences that will redefine the future of data management and AI, on September 12, 2024, at the Museum of the Future in Dubai City.
Scheduled across seven key cities worldwide, EVOLVE24 aims to empower industry leaders, Cloudera’s customers, and partners with insights into harnessing the full potential of hybrid data lakehouses and enterprise AI.
Featured image: Digital transformation and cloud modernisation efforts are expected to fuel substantial revenue growth in the cloud computing industry. Credit: Antoni Shkraba
