Cloud spending to grow 17% to $88.9 bn in 2022 vs 10% in 2021: IDC

The IDC forecast report indicates that cloud infrastructure will grow 17 percent to $88.9 billion in 2022 – as against 10 percent growth in 2021.
Spending on Compute and Storage Cloud Infrastructure in Q2 2022Spending on non-cloud infrastructure is forecast to grow 6.1 percent to $66.4 billion in 2022. Spending on shared cloud infrastructure is forecast to grow 15.1 percent to $61 billion in 2022. The report said spending on dedicated cloud infrastructure is forecast to grow 21.4 percent to $27.9 billion in 2022.

Q2 2022 performance

Spending on compute and storage infrastructure products for cloud deployments rose 22.4 percent year over year in the second quarter of 2022 to $22.6 billion, the latest IDC report said.

Spending on non-cloud infrastructure segment grew 15.2 percent in Q2 to $17.3 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment.

Spending on shared cloud infrastructure grew 18.9 percent to $15.6 billion in the quarter. IDC expects to see strong demand for shared cloud infrastructure with spending expected to surpass non-cloud infrastructure spending in 2023.

The dedicated cloud infrastructure segment grew 30.9 percent 2Q22 to $7 billion. Of the total dedicated cloud infrastructure, 46.3 percent was deployed on customer premises.

In 2Q22, service providers as a group spent $22.6 billion on compute and storage infrastructure, up 19.7 percent from 2Q21. This spending accounted for 56.7 percent of the total market.

Non-service providers (e.g., enterprises, government, etc.) spending on Cloud rose 18.5 percent — driven by deployments of dedicated clouds. IDC expects compute and storage spending by service providers to grow 13.9 percent to reach $88.3 billion in 2022.

Long-term forecast

IDC predicts spending on cloud infrastructure will have a compound annual growth rate (CAGR) of 12 percent over the 2021-2026 forecast period, reaching $134 billion in 2026 and accounting for 67.9 percent of total compute and storage infrastructure spend.

Shared cloud infrastructure will account for 71.9 percent of the total cloud amount, growing at a 12.7 percent CAGR.

Spending on dedicated cloud infrastructure will grow at a CAGR of 10.4 percent to $37.7 billion.

Spending on non-cloud infrastructure will grow at 0.2 percent CAGR, reaching $63.4 billion in 2026. Spending by service providers on compute and storage infrastructure is expected to grow at a 10.9 percent CAGR, reaching $130.2 billion in 2026.

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