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Service providers continue datacentre expansion as Cloud IT Infrastructure market grows

Service providers continue datacentre expansion as Cloud IT Infrastructure market grows

"The transition to Cloud-oriented infrastructure and data platform architectures within enterprises' data centres continues to accelerate."

Total Cloud IT infrastructure spending (server, disk storage, and ethernet switch) grew by 14.4 per cent year over year to $8.0 billion in the fourth quarter of 2014 (4Q14), accounting for approximately 30 per cent of all IT infrastructure spend, up from about 27 percent one year ago.

According to International Data Corporation’s (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, private cloud infrastructure spending grew by 18.3 per cent year over year to $2.9 billion, while public Cloud infrastructure spending grew to $5.0 billion, 12.3 per cent higher than one year ago.

For the full year 2014, Cloud IT infrastructure spending totalled $26.4 billion, up 18.7 per cent year over year from $22.3 billion; private Cloud spending was just under $10.0 billion, up 20.7 per cent year over year, while public Cloud spending was $16.5 billion, up 17.5 per cent year over year.

"The transition to Cloud-oriented infrastructure and data platform architectures within enterprises' datacentres continues to accelerate, yet the expansion of public cloud infrastructure in service providers' datacentres around the world is an even larger driver of IT spending," says Richard Villars, Vice President, Datacenter and Cloud research, IDC.

“A key driver of this acceleration is organisations' development and use of new Internet of Things services that require levels of agility and scale that only cloud solutions can deliver."

In 4Q14, USA had the highest share of overall cloud IT infrastructure spending with 64 per cent, followed by Asia/Pacific (excluding Japan) with 17 per cent and Western Europe with 12 per cent.

Western Europe had the highest growth in Cloud IT infrastructure spending with 30 per cent year-over-year growth.

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