FRAMINGHAM, Mass.--(BUSINESS WIRE)--According to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, total spending on IT infrastructure products (server, storage, and Ethernet switch) for deployment in cloud environments will increase by 18.9% in 2016 to reach $38.2 billion. This amount excludes double counting between storage and server. In comparison, spending on enterprise IT infrastructure deployed in traditional, non-cloud, environments will decline by 4% in 2016, but will still account for the largest share, 62.8%, of end user spending. Spending on private cloud IT infrastructure will grow by 11.1% year over year to $13.9 billion geared toward on-premises private cloud deployments. Spending on public cloud IT infrastructure will increase by 14.1% in 2016 to $24.4 billion.
From a geographic perspective, investments in cloud IT infrastructure will grow across all regions. As cloud service providers continue to expand their portfolio of offerings and customer reach, the public cloud segment will deliver the highest rate of IT spending growth in a majority of regions compared to private cloud and non-cloud environments.
Looking at total cloud IT infrastructure spending, Ethernet switches are forecast to grow at the highest rate, 26.8%, while spending on servers and storage will grow at 12.4% and 11.3%, respectively.
In the long-term forecast, IDC expects that spending on IT infrastructure for cloud environments will grow at a 12.5% five-year compound annual growth rate (CAGR) to $57.8 billion in 2020. This will represent 47.9% of the total spending on enterprise IT infrastructure in 2020. Spending on non-cloud IT infrastructure will decline at a 1.3% CAGR during the same period. Within the cloud segment, spending on public and private cloud IT infrastructure will experience CAGRs of 13.8% and 10.2%, respectively. In 2020, IDC expects service providers will spend $37.5 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $20.3 billion.
"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. "Expansion of cloud offerings creates new opportunities for these businesses to focus efforts on core competences while leveraging the flexibility of service-based IT."
An interactive graphic showing worldwide spending share for public cloud, private cloud, and traditional IT infrastructure over the 2015-2020 forecast period is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.
IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker is designed to provide clients with a better understanding of what portion of the server, disk storage systems, and networking hardware markets are being deployed in cloud environments. This tracker will break out vendors' revenue by the hardware technology market into public and private cloud environments for historical data and also provide a five-year forecast by the technology market.
Taxonomy Notes:
IDC defines cloud services more formally through a checklist of key attributes that an offering must manifest to end users of the service. Public cloud services are shared among unrelated enterprises and consumers; open to a largely unrestricted universe of potential users; and designed for a market, not a single enterprise. The public cloud market includes variety of services designed to extend or, in some cases, replace IT infrastructure deployed in corporate datacenters. It also includes content services delivered by a group of suppliers IDC calls Value Added Content Providers (VACP). Private cloud services are shared within a single enterprise or an extended enterprise with restrictions on access and level of resource dedication and defined/controlled by the enterprise (and beyond the control available in public cloud offerings); can be onsite or offsite; and can be managed by a third-party or in-house staff. In private cloud that is managed by in-house staff, "vendors (cloud service providers)" are equivalent to the IT departments/shared service departments within enterprises/groups. In this utilization model, where standardized services are jointly used within the enterprise/group, business departments, offices, and employees are the "service users."
For more information about IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, please contact Lidice Fernandez at 305-351-3057 or lfernandez@idc.com.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad. The IDC Tracker Chart app is also available for Android Phones and Android Tablets.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
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