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Sunday, July 9, 2017

Public cloud datacenter to dominate 2017 cloud infrastructure spend - IDC

#Publiccloud datacenters will represent the largest portion of cloud IT infrastructure spending this year, accounting for 60.7 percent of the market, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker announced this week. IDC expects the segment of cloud IT infrastructure spending (which includes servers, enterprise storage and ethernet switches) will also grow faster than any other segment year over year at 13.8 percent.

Overall, cloud IT infrastructure spending will hit $40.1 billion this year, according to IDC. This represents a 12.4 percent year over year increase, the analyst noted.

In addition, the analyst said 14.9 percent of overall spending will go to off-premise private cloud environments as it grows 11.9 percent year over year.

When it comes to private cloud IT infrastructure, IDC is expecting 9.6 percent year over year growth for on-premise private clouds, which it predicts will represent 62.2 percent of private cloud IT infrastructure spending in 2017.

On the other hand, global spending on non-cloud, traditional IT infrastructure will drop 4.6 percent, "accounting for 58.7 percent of the overall end user spending on IT infrastructure products across the three segments, down from 62.6 percent in 2016", IDC said.

In a statement, Natalya Yezhkova, research director of enterprise storage at IDC, noted that 2016 spending trends will carry over through 2017 "with some differences in specific technology segments".

"Enterprise adoption of hybrid and multi-cloud IT strategies and the proliferation of cloud-native applications and areas, such as the Internet of Things, which embrace a cloud-first approach to supporting IT resources, will fuel further increases in end user spending on services-based IT," Yezhkova said. " 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."

Further, IDC expects ethernet switches will grow faster than storage or servers, with the hardware offerings showing year over year growth of 25.8 percent, 12 percent and 9.1 percent, respectively.

Looking further ahead, IDC expects the off-premise cloud IT infrastructure market to reach $45.7 billion in 2021 with a CAGR of 11 percent. Again, it sees public cloud datacenters as the largest player, predicting that the segment will represent 79.8 percent of said spend at a CAGR of 11 percent. Meanwhile, off-premise private cloud infrastructure will grow at a CAGR of 11.3 percent, IDC figures.

It said that on-premise private cloud plus total cloud IT infrastructure spending will surpass non-cloud IT infrastructure spending by 2020.

https://www.channelnomics.com/channelnomics-us/news/3013358/public-cloud-datacenter-to-dominate-2017-cloud-infrastructure-spend-idc

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