Spending on IT infrastructure products such as server, enterprise storage, and Ethernet switches for Cloud deployment will grow at 12.4 percent to $40.1 billion in 2017.
Growth drivers are enterprise adoption of hybrid and multi-cloud IT strategies and proliferation of cloud applications and areas such as the Internet of Things (IoT), which embrace a cloud-first approach to supporting IT resources.
Public cloud datacenters will account for 60.7 percent of spending and will grow at 13.8 percent, said IDC.
Off-premises private cloud environments will represent 14.9 percent of spending and will grow 11.9 percent.
On-premises private clouds will account for 62.2 percent of spending on private cloud IT infrastructure and will grow 9.6 percent.
IDC said increased spending on cloud IT infrastructure and decreasing investments in non-cloud IT infrastructure will be a common theme for all regions.
Spending on traditional, non-cloud, IT infrastructure will dip 4.6 percent in 2017 accounting for 58.7 percent of the end-user spending on IT infrastructure products across the three segments, down from 62.6 percent in 2016.
In cloud IT environments, Ethernet switches will be the fastest growing technology segment with 25.8 percent growth in 2017, while spending on servers and enterprise storage will grow 9.1 percent and 12 percent, respectively. These growth rates include double counting between server and storage to fully represent each of the technology segments. In all three technology segments, spending on IT infrastructure deployed off-premises will grow in 2017 while spending on on-premises environments will decline.
Spending on off-premises cloud IT infrastructure will have a compound annual growth rate (CAGR) of 11.0 percent, reaching $45.7 billion in 2021.
Public cloud datacenters will account for 79.8 percent of this amount with an 11.0 percent CAGR, while spending on off-premises private cloud infrastructure will increase at an 11.3 percent CAGR.
Combined with on-premises private cloud, overall spending on cloud IT infrastructure will have a five-year CAGR of 10.9 percent and by 2020 will surpass spending on non-cloud IT infrastructure.
Spending on on-premises private cloud IT infrastructure will grow at a 10.5 percent CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 3.1 percent CAGR during the same period.
“The overall profile of spending on IT infrastructure in various deployment/location scenarios seen in 2016 will continue in 2017 with some differences in specific technology segments,” said Natalya Yezhkova, research director, Enterprise Storage at IDC.
