Cloud is the strongest growth area

Posted on Oct 22 2016 - 8:05am by John Peters
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IDC: Spending on IT infrastructure for cloud environments will be strong in 2016

The latest WW Quarterly Cloud Infrastructure Tracker published by IDC shows that EMEA public and private cloud IT

 Importantly, IDC points to the fact that the tracker does not include an assessment of the impact of the UK leaving the EU.


Importantly, IDC points to the fact that the tracker does not include an assessment of the impact of the UK leaving the EU.

infrastructure spending (server, disk storage and Ethernet switch) has grown 17.6 per cent in the first quarter of 2016.

The tracker is designed to provide a better understanding of what portion of the server, enterprise storage systems and networking hardware markets are being deployed in cloud environments.

Importantly, IDC points to the fact that the tracker does not include an assessment of the impact of the UK leaving the EU.

“Our forecast for the UK may be adjusted downward in the following quarter as IDC expects a ‘challenging transition’ if the UK activates the process of EU withdrawal,” said Kamil Gregor, Research Analyst, European Infrastructure GroupĀ at IDC.

The cloud-related share of total EMEA infrastructure expenditure grew to more than 25.1 per cent in 1Q16, an increase of four per cent on last year. In terms of storage capacity, IDC reports that cloud represented almost thirty per cent of total EMEA capacity in the same period, with a 6.1 per cent decline over the first quarter in 2015.

“IDC expects this market to reach a value of $10.7 billion by 2020, or 46.4 per cent of total market expenditure, making it one of the strongest growth areas for the European infrastructure sector, compared with the expectation of a stagnant, if not declining, traditional market,” Gregor said.

Public v private cloud

Within the cloud segment, all regions are expected to increase spending in 2016 with investments in public cloud growing at a faster rate than investments in private cloud IT infrastructure. IDC says spending on private cloud IT infrastructure will grow by 10.3 per cent year on year with more than 60 per cent of this amount contributed by on-premises private cloud environments, while spending on public cloud IT infrastructure will increase by 18.8 per cent in 2016.

For cloud environments combined, the analyst predicts that spending on Ethernet switches will be growing at the highest rate, 39.5 per cent, while spending on server and storage will grow at 11.4 per cent and 14.2 per cent respectively. For the long-term forecast, IDC expects that spending on IT infrastructure for cloud environments will grow at a 13.1 per cent compound annual growth rate (CAGR) to $59.5 billion in 2020. This will represent almost half of the total spending on enterprise IT infrastructure.

In Western Europe, the growth in cloud infrastructure spending has been distributed nearly equally between enterprise storage and servers, with year-on-year growth of 12 per cent and 16.6 per cent respectively. The two types of technology currently account for about 42 per cent and 45 per cent of the total market.

www.idc.com