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Spend on cloud set to increase, non-cloud spending to decline

21 Jan 2016

Total spending on IT infrastructure for deployment in cloud environments is set to reach $32.8 billion in 2015, an increase of 24.6%, according to new data from IDC, which also forecasts spending on traditional infrastructure to decline. 

The research says spending on cloud IT infrastructure will increase to 32.9% of overall spending on enterprise IT infrastructure in 2014, up from 28% of overall spending. 

This differs from spending on IT infrastructure deployed in traditional, non-cloud, environments, which IDC says will decline -1.1% in 2015. The analyst firm says at $67 billion, it will remain the largest segment of the market

Spending on private cloud IT infrastructure will grow by 19.1% year over year to $12.4 billion, while spending on public cloud IT infrastructure will increase 28.2% year over year in 2015 to $20.4 billion.

Central and Eastern Europe remains the only region where spending on cloud IT infrastructure is expected to decline in 2015. In most other regions, spending on cloud IT infrastructure will grow at double-digit rates, IDC says. 

For all three technologies – server, storage and Ethernet switch – growth in spending will exceed 20%; spending on servers will grow at the highest rate, 26.7%.

For the five-year forecast period, IDC expects that spending on IT infrastructure for cloud environments will grow at a compound annual growth rate (CAGR) of 15.5% and will reach $54.3 billion by 2019, accounting for 46.6% of the total spending on enterprise IT infrastructure.

Spending on non-cloud IT infrastructure will decline at a-1.7% CAGR during the same period. Within the cloud segment, spending on public and private cloud IT infrastructure will grow at 16.6% and 13.8% CAGRs respectively.

In 2019, IDC expects service providers will spend $34.4 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $19.9 billion.

"The growing sophistication and reliability of cloud services continue to drive increasing demand for public and private cloud offerings," explains Natalya Yezhkova, research director, storage systems. 

"End users find that through utilisation of multiple deployment models, including public cloud, on-premises and off-premises private cloud, and traditional IT infrastructure, they can achieve flexibility and agility tuned to the requirements of various legacy and next-gen workloads and applications," she says. 

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