Cloud deployments rise as IT infrastructure spend grows
- 18 January, 2016 06:26
Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for Cloud IT, including public and private Cloud, grew by 23 per cent year over year to $US7.6 billion in the third quarter of 2015 (3Q15).
According IDC findings, the overall share of Cloud IT infrastructure sales climbed to 33.8 per cent in 3Q15, up from 28.7 per cent a year ago.
Revenue from infrastructure sales to private Cloud grew by 18.8 percent to $US2.9 billion, and to public Cloud by 25.9 per cent to $US4.6 billion.
In comparison, revenue in the traditional (non-Cloud) IT infrastructure segment decreased by -3.2 percent year over year in the third 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, with server experiencing the highest growth in private Cloud at 24.3 per cent and Ethernet switch with the highest growth in public Cloud at 37.8 per cent.
Public Cloud spending on storage grew 26.7 per cent year on year.
“IDC continues to see healthy double-digit growth in Cloud IT deployments in the market with an increasing preference for public cloud infrastructure,” says Kuba Stolarski , Research Director for Computing Hardware and Platforms, IDC.
“Customers are modernising their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises.
“These customers depend on a mix of as-a-service offerings and traditional infrastructure to help meet the IT transformation requirements of their organisations.
“As public Cloud offerings continue to evolve and improve in reliability and security, customers are becoming more comfortable with the flexibility that they get by deploying certain workloads in these elastic environments.”
At the regional level, vendor revenues from cloud IT infrastructure sales grew fastest in Japan at 47.1 per cent year over year, followed by Asia/Pacific (excluding Japan) at 35.3 per cent, Western Europe at 22.1 per cent, Canada at 22.0 per cent, and the United States at 20.1 per cent.
Central and Eastern Europe declined at -10.2 per cent year over year as the region continues to go through political and economic turmoil, which impacts overall IT spending.