Cloud IT infrastructure spending to grow at 11% to $52.3 bn in 2018: IDC

Spending on IT infrastructure products for the deployment in cloud will achieve 10.9 percent growth to $52.3 billion in 2018, the latest IDC report revealed.
Spending on IT Infrastructure for Deployment in Cloud Environments
Public cloud datacenters will account for 65.9 percent, clocking a growth of 11.3 percent.

Off-premises private cloud environments will represent 13 percent of cloud IT infrastructure spending, registering a growth of 12 percent.

On-premises private clouds will account for 61.7 percent of spending on private cloud IT infrastructure and will grow 9.1 percent in 2018.

IT infrastructure products include server, enterprise storage, and Ethernet switches. Main tech suppliers in this segment are Dell EMC, Dell, IBM, Cisco, Oracle, Juniper Networks, among others.

Spending on traditional, non-cloud, IT infrastructure is expected to decline by 2 percent in 2018 — accounting for 54.7 percent of total end user spending on IT infrastructure products across the three product segments, down from 57.8 percent in 2017.

In cloud IT environments, spending in all technology segments, except for storage platforms, is forecast to grow at double digit rates in 2018.

Ethernet switches and compute platforms will be the fastest growing at 20.9 percent and 12.4 percent, respectively, while spending on storage platforms will grow 6 percent.

Investments in all three technologies will increase across all cloud deployment models – public cloud, private cloud off-premises, and private cloud on-premises.

Spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate (CAGR) of 10.8 percent, reaching $55.7 billion in 2022.

Public cloud datacenters will account for 83.6 percent of this amount growing at 10.6 percent CAGR.

Spending on off-premises private cloud infrastructure will increase at a CAGR of 11.4 percent.

Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at 10.9 percent CAGR and by 2022 will surpass spending on non-cloud IT infrastructure.

Spending on on-premises private cloud IT infrastructure will grow at a 11.5 percent CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 2.7 percent CAGR during the same period.

“Growing expansion of digital transformation initiatives enables further adoption of cloud-based solutions,” said Natalya Yezhkova, research director, Enterprise Storage at IDC.

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