​Cloud to overtake traditional data centres as infrastructure spending soars to $40bn

Worldwide spending on traditional, non-cloud, IT infrastructure expected to decline 4.6% in 2017.

The IT infrastructure space is in a rapid evolving cycle of change which will see a drop of more than 10% in the usage of traditional data centre architectures by 2021.
That is according to IDC’s latest Worldwide Quarterly Cloud IT Infrastructure Tracker, which predicts that from 2019 to 2020, public and private cloud deployments will overtake those of traditional infrastructure.
Today, traditional data centre deployments account to 58.66%, whilst public cloud amounts to 25.09% and private cloud 16.25%.
This will change once the new decade comes in, with traditional data centres falling to 48.59%, and public and private clouds increasing to 31% and 20.41% respectively.
The overall IT infrastructure spending between the three types of deployment is expected to increase 12.4% year over year in 2017 to $40.1bn.
Off-premises private cloud environments will represent 14.9% of overall spending and will grow 11.9% year over year.
On-premises private clouds will account for 62.2% of spending on private cloud IT infrastructure and will grow 9.6% year over year in 2017.
Increased spending on cloud IT infrastructure and decreasing investments in non-cloud IT infrastructure will be a common theme for all regions, the report highlights.
Worldwide spending on traditional, non-cloud, IT infrastructure will decline 4.6% in 2017 accounting for 58.7% of the overall end-user spending on IT infrastructure products across the three segments, down from 62.6% in 2016.
Over the five-year forecast, IDC expects spending on off-premises cloud IT infrastructure will have a compound annual growth rate (CAGR) of 11.0%, reaching $45.7bn in 2021.
Public cloud data centres will account for 79.8% of this amount with an 11.0% CAGR, while spending on off-premises private cloud infrastructure will increase at an 11.3% CAGR.
Combined with on-premises private cloud, overall spending on cloud IT infrastructure will have a five-year CAGR of 10.9% and by 2020 will surpass spending on non-cloud IT infrastructure.
Spending on on-premises private cloud IT infrastructure will grow at a 10.5% CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 3.1% CAGR during the same period.
Natalya Yezhkova, research director, Enterprise Storage, said: “Enterprise adoption of hybrid and multi-cloud IT strategies and the proliferation of cloud-native applications and areas such as the Internet of Things (IoT), which embrace a cloud-first approach to supporting IT resources, will fuel further increases in end-user spending on services-based IT.
“In turn, this move will be reflected in a shift of the overall spending on IT infrastructure from on-premises to off-premises deployments and from traditional IT to cloud IT.”

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