Spending on IT infrastructure products such as server, enterprise storage, and Ethernet switches for deployment in cloud environments will grow 15.3 percent in 2017 to $41.7 billion, said IDC.
Public cloud datacenters will account for 60.5 percent of spending, while off-premises private cloud environments will represent 14.9 percent of spending.
On-premises private clouds will account for 62.3 percent of spending on private cloud IT infrastructure and will grow 13.1 percent in 2017.
Spending on traditional, non-cloud, IT infrastructure will decline 5.3 percent in 2017 — accounting for 57.9 percent of end user spending.
Ethernet switches will grow at 21.8 percent, while spending on servers will grow 17.9 percent and enterprise storage at 10.7 percent.
Spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate (CAGR) of 11.7 percent, reaching $47.2 billion in 2021.
Public cloud datacenters will account for 80.4 percent of this amount. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at an 11.4 percent CAGR and will surpass spending on non-cloud IT infrastructure by 2020.
Spending on on-premises private cloud IT infrastructure will grow at a 10.3 percent CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 3 percent CAGR during the same period.
“Demand for access to agile IT resources and proliferation of next generation workloads will drive adoption of cloud-based services. This move leads to a shift in IT infrastructure spending from traditional enterprise on-premises deployments to datacenters delivering cloud services and corporate private clouds,” said said Natalya Yezhkova, research director, Storage Systems at IDC.
