Cloud Services Fastest Growing IT Deployment Segments
July 6, 2017
to a new forecast from the International
Data Corporation (IDC) Worldwide Quarterly
Cloud IT Infrastructure Tracker, total
spending on IT infrastructure products
(server, enterprise storage, and Ethernet
switches) for deployment in cloud
environments will increase 12.4% year over
year in 2017 to $40.1 billion. Public cloud
datacenters will account for the majority of
this spending (60.7%) and will grow at the
fastest rate year over year (13.8%).
Off-premises private cloud environments will
represent 14.9% of overall spending and will
grow 11.9% year over year. On-premises
private clouds will account for 62.2% of
spending on private cloud IT infrastructure
and will grow 9.6% year over year in 2017.
Over the five-year forecast, IDC expects spending on off-premises cloud IT infrastructure will have a compound annual growth rate (CAGR) of 11.0%, reaching $45.7 billion in 2021. Public cloud datacenters will account for 79.8% of this amount with an 11.0% CAGR, while spending on off-premises private cloud infrastructure will increase at an 11.3% CAGR. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will have a five-year CAGR of 10.9% 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% CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 3.1% 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. "Enterprise adoption of hybrid and multi-cloud IT strategies and the proliferation of cloud-native applications and areas such as the Internet of Things (IoT), which embrace a cloud-first approach to supporting IT resources, will fuel further increases in end-user spending on services-based IT. In turn, this move will be reflected in a shift of the overall spending on IT infrastructure from on-premises to off-premises deployments and from traditional IT to cloud IT."