IDC forecast on cloud infrastructure spending

Research firm IDC is forecasting cloud infrastructure spending will grow 26.1 percent to $138.3 billion in 2024.

IDC report on Shared Cloud Infrastructure Spending

Cloud infrastructure spending growth being driven by the explosion of AI-related investments, which not only impact servers but also started to have positive influence on enterprise storage as well, Juan Pablo Seminara, research director for IDC’s Worldwide Enterprise Infrastructure Tracker, said in the report.

Non-cloud infrastructure is forecast to grow 8.4 percent to $64.8 billion.

Shared cloud infrastructure is expected to grow 30.4 percent year over year to $108.3 billion for the full year.

Spending on dedicated cloud infrastructure is expected to achieve 12.8 percent growth reaching $30.0 billion for the full year.

The growth in non-cloud infrastructure will be 8.4 percent in 2024.

Q1 2024

Spending on cloud deployments, including dedicated and shared IT environments, increased 36.9 percent in the first quarter of 2024 to $33.0 billion, IDC said.

Spending on non-cloud infrastructure grew 5.7 percent in 1Q24 to $13.9 billion.

Spending on shared (public) cloud infrastructure increased 43.9 percent to $26.3 billion in the first quarter.

In terms of unit, the cloud infrastructure segment rose 11.4 percent, due to the increase in average selling prices (ASPs) mostly related to higher than usual GPU server shipments.

In 1Q24, shared cloud accounted for 56.1 percent of total infrastructure spending. The dedicated cloud infrastructure segment grew 15.3 percent in 1Q24 to $6.7 billion.

In 1Q24, service providers group spent $32.2 billion on compute and storage infrastructure, up 37.9 percent from the prior year. The spending by service providers group accounted for 68.7 percent of the total market.

Non-service providers (e.g., enterprises, government, etc.) also increased their spending to $14.7 billion growing 5.8 percent. IDC expects compute and storage spending by service providers to reach $132.2 billion in 2024, growing at 26.2 percent year over year.

FORECAST

IDC predicts spending on cloud infrastructure will have a compound annual growth rate (CAGR) of 14.3 percent over the 2023-2028 forecast period, reaching $213.7 billion in 2028 and accounting for 75.0 percent of total compute and storage infrastructure spend.

Shared cloud infrastructure spending will account for 77.5 percent of the total cloud spending in 2028, growing at a 14.8 percent CAGR and reaching $165.6 billion.

Spending on dedicated cloud infrastructure will grow at a CAGR of 12.6 percent to $48.2 billion.

Spending on non-cloud infrastructure will achieve 3.6 percent CAGR, reaching $71.4 billion in 2028.

Spending by service providers on compute and storage infrastructure is expected to grow at a 13.8 percent CAGR, reaching $199.9 billion in 2028.

Baburajan Kizhakedath

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