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​Enterprise tech modernisation triggers Cloud IT infrastructure vendor gains

​Enterprise tech modernisation triggers Cloud IT infrastructure vendor gains

“The Cloud IT infrastructure market continues to see strong double-digit growth."

Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for Cloud IT, including public and private Cloud, grew 21.9 percent year over year to $29.0 billion in 2015, with vendor revenue for the fourth quarter (4Q15) growing 15.7 percent to $8.2 billion.

Compared to overall IT infrastructure spending, IDC findings report that the share of Cloud IT infrastructure sales climbed to 32.2 percent in 4Q15, up from 28.6 percent a year ago.

Revenue from infrastructure sales to private Cloud grew by 17.5 percent to $3.3 billion, and to public Cloud by 14.6 percent to $4.9 billion.

In comparison, revenue in the traditional (non-Cloud) IT infrastructure segment decreased 2.7 percent year over year in the fourth quarter, with declines in all three technology segments (server, storage and Ethernet switch).

All three technology markets showed strong year-over-year growth in both private and public Cloud segments, except for storage in the public Cloud, which declined 4.0 percent in 4Q15 on a difficult compare with a very strong quarter in the prior year.

Meanwhile, private Cloud growth was led by Ethernet switch with 19.6 percent growth.

In public Cloud, Ethernet switch led the way with 56.9 percent year-on-year growth, while public Cloud revenue from server grew 28.9 percent year on year in 4Q15.

For the full year, server revenue in private Cloud grew by 23.0 percent year on year, while Ethernet switch revenue in public Cloud grew by 36.6 percent during the same period.

“The Cloud IT infrastructure market continues to see strong double-digit growth with faster gains coming from public Cloud infrastructure demand,” says Kuba Stolarski, Research Director for Computing Platforms, IDC.

“End customers are modernising their infrastructures along specific workload, performance, and TCO requirements, with a general tendency to move into 3rd Platform, next-gen technologies.

“Options on and off premises continue to expand, along with open platforms that enhance hybrid capabilities for a variety of use cases.

“Public Cloud as-a-service offerings also continue to mature and grow in number, allowing customers to increasingly use sophisticated, mixed strategies for their deployment profiles.

“While the ice was broken a long time ago for public Cloud services, the continued evolution of the enterprise IT customer means that public Cloud acceptance and adoption will continue on a steady pace into the next decade.”

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