Spending on Cloud infrastructure surges 24.7% to $23.9 bn in Q3: IDC

Spending on compute and storage infrastructure products for cloud deployments rose 24.7 percent in the third quarter of 2022 to $23.9 billion, IDC report said.
cloud business  Spending on the non-cloud infrastructure grew 16.5 percent to $16.8 billion in Q3.

Spending on shared cloud infrastructure increased 24.4 percent to $16.8 billion in the third quarter.

Spending on the dedicated cloud infrastructure segment grew 25.3 percent to $7.1 billion. Of the total dedicated cloud infrastructure, 45.2 percent was deployed on customer premises.

IDC is forecasting cloud infrastructure spending to grow 19.6 percent in 2022 to $88.1 billion – a noticeable increase from 8.6 percent annual growth in 2021.

Spending on non-cloud infrastructure is expected to grow 10.7 percent to $64.7 billion. Shared cloud infrastructure is expected to grow 19.0 percent to $60.9 billion for the full year.

Spending on dedicated cloud infrastructure is expected to grow 21.2 percent to $27.3 billion for the full year.

In 3Q22, spending by service providers — cloud service providers, digital service providers, communications service providers, and managed service providers — rose 22.5 percent to $23.9 billion on compute and storage infrastructure. This spending accounted for 58.7 percent of the total market.

Non-service providers (e.g., enterprises, government, etc.) increased their spending at  19.3 percent. IDC expects compute and storage spending by service providers to reach $87.8 billion in 2022, growing at 17.5 percent.

IDC predicts spending on cloud infrastructure to have a compound annual growth rate (CAGR) of 12.9 percent over the 2021-2026 forecast period, reaching $135.1 billion in 2026 and accounting for 67.3 percent of total compute and storage infrastructure spend.

Shared cloud infrastructure will account for 72.3 percent of the total cloud amount, growing at a 13.8 percent CAGR.

Spending on dedicated cloud infrastructure will grow at a CAGR of 10.7 percent to $37.4 billion. Spending on non-cloud infrastructure will have a CAGR of 2.3 percent, reaching $65.6 billion in 2026.

Spending by service providers on compute and storage infrastructure is expected to grow at a CAGR of 12.1 percent, reaching $131.9 billion in 2026.