Cloud Computing Landscape
Cloud computing continues to grow in 2025, driven by the adoption of AI, hybrid and multi-cloud strategies, and increasing demand for flexible and scalable IT infrastructure. The latest data reveals strong momentum across all major cloud segments.
How did we collect this data?
We put together these statistics from a variety of reputable sources such as Gartner and the International Data Corporation. All sources are cited at the bottom of this article. We are committed to data accuracy and have verified sources to ensure the reliability of the information provided. In case of any concerns or inaccuracies, please reach out to us at support@pump.co and we’re happy to make any necessary corrections.
Key Cloud Computing Statistics for 2025
1. Worldwide end-user spending on public cloud services will reach $723.4 billion in 2025, marking a 21.5% increase from 2024. [Gartner]
2. All cloud market segments are experiencing double-digit growth, with IaaS growing fastest at 24.8%. [Gartner]
3. Nearly one-third (29%) of organizations spend over $12 million annually on cloud services. [Flexera]
4. SaaS remains the largest segment at $299 billion in expected 2025 spending, though growing slower than infrastructure services. [Gartner]
5. By 2027, an estimated 90% of organizations will adopt a hybrid cloud approach. [Gartner]
6. The top five cloud providers (Microsoft, AWS, Salesforce, Google, and Oracle) collectively hold 40.5% of global revenue. [IDC]
7. Microsoft leads cloud providers with a 16.8% market share, followed by AWS at 12.4%. [IDC]
8. AWS remains most popular among SMBs with 53% adoption, while Azure is used by 29%. [Flexera]
9. Spending on cloud infrastructure reached $33 billion in Q1 2024, representing a 36.9% year-over-year increase. [IDC]
10. Cloud infrastructure is projected to account for 75% of total compute and storage spend by 2028. [IDC]
11. Nearly 60% of organizations now have dedicated FinOps teams focused on cloud cost optimization. [Flexera]
12. Managing cloud spending has surpassed security as the top challenge for organizations. [Flexera]
13. AI-powered PaaS solutions are growing faster than the overall cloud market. [Gartner, IDC]
14. Public cloud IaaS is becoming essential infrastructure for AI and generative AI workloads. [Gartner, IDC]
15. Shared cloud infrastructure spending is expected to reach $165.6 billion by 2028, growing at a 14.8% CAGR. [IDC]
Breakdown: Cloud Spending by Segment
Gartner’s latest forecast shows robust growth across all major cloud service segments, with IaaS and PaaS leading the charge. As enterprises deepen their cloud investments, year-over-year spending is expected to rise sharply in 2025.
Segment | 2024 Spending (Gartner, $M) | 2025 Spending (Gartner, $M) | Growth Rate (%) |
SaaS (Software as a Service) | 250,804 | 299,071 | 19.2 |
IaaS (Infrastructure as a Service) | 169,818 | 211,856 | 24.8 |
PaaS (Platform as a Service) | 171,565 | 208,644 | 21.6 |
DaaS (Desktop as a Service) | 3,466 | 3,849 | 11.1 |
In a nutshell
Cloud computing is on a strong growth trajectory and organizations are increasingly focused on cost optimization and operational efficiency, as seen by the rise of FinOps practices. The market is expected to continue expanding at a double-digit pace through the end of the decade, with public cloud services playing a central role in digital transformation initiatives worldwide.
