Cloud IT infrastructure biz grew 9%: IDC

Revenue from sales of IT infrastructure products including server, enterprise storage, and Ethernet switch for public and private cloud environments, increased 9.4 percent in the third quarter of 2020 (3Q20).
Cloud IT vendors Q3 2020Investments in traditional, non-cloud, IT infrastructure declined 8.3 percent in 3Q20.

There were shifts to online tools in all aspects of human life, including collaboration, virtual business events, entertainment, shopping, telemedicine, and education. Cloud environments, and particularly public cloud, were a key enabler of this shift.

Spending on public cloud IT infrastructure increased 13.1 percent to $13.3 billion.

During the previous quarter spending on public cloud IT infrastructure exceeded non-cloud IT spending for the first time ever, but non-cloud IT infrastructure spending was back on top in 3Q20 at $13.7 billion.

IDC expects public cloud IT infrastructure spending to surpass non-cloud IT infrastructure spending again in the near future.

Spending on private cloud infrastructure increased 0.6 percent in 3Q20 to $5.0 billion with on-premises private clouds accounting for 63.2 percent of this amount.

The hardware infrastructure market has reached a tipping point and cloud environments will continue to account for an increasingly greater share of overall spending.

IDC has increased its forecast slightly for cloud IT infrastructure spending for 2020, expecting 11.1 percent growth to $74.1 billion.

IDC reduced its forecast for non-cloud infrastructure, expecting decline of 11.4 percent to $60.2 billion. Public cloud IT infrastructure is expected to grow by 16.7 percent year over year to $52.7 billion for the full year. Spending on private cloud infrastructure is expected to decline -0.5 percent to $21.3 billion for the full year.

Within cloud deployment environments in 2020, compute platforms will remain the largest segment (49.1 percent) of spending, growing at 2.3 percent to $36.4 billion while storage platforms will be the fastest growing segment with spending increasing 27.4 percent to $29.2 billion, and the Ethernet switch segment will grow 4.0 percent year over year to $8.5 billion.

Spending on cloud IT infrastructure increased across most regions in 3Q20, with the annual growth rates in Canada (32.8 percent), China (29.4 percent), and Latin America (23.4 percent).

Growth in the United States was 4.7 percent. Japan and Western Europe declined by 6.7 percent and 3.4 percent, respectively.

Inspur, Huawei, and Lenovo had double-digit year-over-year growth while most other major vendors, including the ODM Direct group of vendors, had single-digit growth. Cisco was the only major vendor with a year-over-year decline.

Related News

Latest News

Latest News