Cloud to Account for Half of All IT Infrastructure Spending by 2020: IDC
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Enterprise IT cloud infrastructure spending will rise by almost 19 percent to 37.2 percent in 2016, as spending on non-cloud environments declines, according to research released this week by IDC. The Worldwide Quarterly Cloud IT Infrastructure Tracker is good news for cloud infrastructure vendors, as it projects cloud to account for almost half of all IT infrastructure spending by 2020.
Private cloud is expected to grow by over 11 percent year-over-year to $13.9 billion, while public cloud infrastructure will grow by over 14 percent to $24.4 billion. Over the next five years, private cloud is expected to have a compound annual growth rate of 10.2 percent to reach $20.3 billion, while public grows by 13.8 percent annually to $37.5 billion.
The growth in 2016 cloud infrastructure spending is seen in every region, with public cloud the leading segment in more regions than both private and non-cloud IT infrastructure combined.
“For the majority of corporate and public organizations, IT is not a core business but rather an enabler for their core businesses and operations,” said Natalya Yezhkova, Research Director, Storage Systems for IDC. “Expansion of cloud offerings creates new opportunities for these businesses to focus efforts on core competences while leveraging the flexibility of service-based IT.”
While both storage and servers are predicted to grow at healthy rates faster than 10 percent, Ethernet switches are expected to grow by 26.8 percent, according to the report.
A Forrester report in 2014 predicted that overall public cloud spending would reach $191 billion in 2020 after a “hypergrowth” period. That total includes $44 billion in revenue for public cloud platforms which in this case would correspond roughly with the infrastructure IDC is counting, while a predicted$133 billion in revenue will come from public cloud applications.
Overall cloud infrastructure spending growth in 2015 was predicted to be 21 percent in last year’s report.
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