Cloud growth acts as counterweight to ‘flat’ EMEA infrastructure market in Q1: IDC

First quarter spend on servers, storage, switches reaches $1.01bn

Tags: International Data Corporation
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Cloud growth acts as counterweight to ‘flat’ EMEA infrastructure market in Q1: IDC
By  Stephen McBride Published  July 15, 2015

IT infrastructure spending for public and private cloud in Europe, the Middle East, and Africa (EMEA), grew 16%, year on year, to reach $1.01bn in revenue in the first quarter of 2015, according to International Data Corporation (IDC).

The company was referring to figures from its Worldwide Quarterly Cloud Infrastructure Tracker. IDC classifies infrastructure as servers, disk storage or Ethernet switches and tracks Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Lenovo, NetApp and Oracle, as well as some other, less well-known ODMs.

In the breakdown, IDC claimed that the share of total EMEA infrastructure expenditure related to cloud deployments grew two percentage points from Q1 2014, to reach 19%.

Cloud represented around 33% of total EMEA storage capacity in the period under review, with 45% year-on-year growth.

"IDC expects cloud-related infrastructure spending to reach a yearly value close to $12bn in EMEA by 2019, or 43% of the total market expenditure, making it an area of tremendous growth for the European infrastructure sector compared with the expectation of a stagnant, if not declining, traditional market," said Giorgio Nebuloni, associate research director, European Cloud Practice, IDC.

The emerging markets of Central and Eastern Europe, the Middle East, and Africa (CEMA) took 14% of EMEA cloud investments in Q1. IDC characterised this as "a strong decrease compared with the same quarter last year", when CEMA accounted for 17%. Challenging macroeconomic conditions in Russia and weaker investments in the public cloud segment were the main reasons for the decline, the company believes.

"However, the private cloud model is seeing increased investments from both private and public sectors as many CIOs recognise the benefits of higher flexibility provided by cloud technology," said Jiri Helebrand, research manager, Systems and Infrastructure Solutions, IDC CEMA.

Cloud infrastructure spending in the CEMA region is estimated to be 11% of the total addressable server, storage, and networking hardware market, with public cloud accounting for about 40% of this.

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