IDC: Accelerating IT Infrastructure Spending for Public Clouds

Total spending on IT infrastructure products (server, enterprise storage, and Ethernet switches) for deployment in cloud environments will increase 15.3% year over year in 2017 to $41.7 billion, according to a new forecast from IDC.

“After the slowdown seen in 2016, we expect to see spending on IT infrastructure for public cloud deployments return to double-digit growth in 2017,” said Natalya Yezhkova, research director, Storage Systems. “Growing demand for access to agile IT resources and proliferation of next generation workloads will continue driving adoption of cloud-based services. In turn, 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.”

Some highlights from IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker:

• Public cloud datacenters will account for the majority of spending, 60.5%, while off-premises private cloud environments will represent 14.9% of spending. On-premises private clouds will account for 62.3% of spending on private cloud IT infrastructure and will grow 13.1% year over year in 2017.
• Overall, worldwide spending on traditional, non-cloud, IT infrastructure will decline 5.3% in 2017. However, it will still account for the largest share, 57.9%, of end user spending.
• In cloud environments, Ethernet switches will be the fastest growing technology segment at 21.8% year over year growth in 2017, while spending on servers and enterprise storage will grow 17.9% and 10.7%, respectively. 
• Long term, IDC expects spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate (CAGR) of 11.7%, reaching $47.2 billion in 2021. Public cloud datacenters will account for 80.4% of this amount. 

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