Cloud IT infrastructure spend to grow 24% in 2015

Global market to reach $32.6bn by end of year, according to IDC

Tags: Cloud computingIDC Middle East and Africa
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Cloud IT infrastructure spend to grow 24% in 2015 Spending on private cloud infrastructure will grow by 15.8% year over year to $12.1bn, IDC said
By  Tom Paye Published  October 6, 2015

Total spending on cloud IT infrastructure - including servers, storage and Ethernet switches - will grow by 24.1% in 2015, reaching $32.6bn, according to the latest forecast from IDC.

The research house's Worldwide Quarterly Cloud IT Infrastructure Tracker said that the amount will account for a third of overall end user spending on enterprise IT infrastructure, up from 27.9% in 2014.

Spending on private cloud infrastructure will grow by 15.8% year over year to $12.1bn, while spending on public cloud infrastructure will increase by 29.6% to $20.5bn, IDC said.

On the flipside of this growth, spending on infrastructure deployed in traditional, non-cloud environments will decline by 1.6% in 2015, IDC said. That said, the research house pointed out that, at $66.8bn, this segment will remain the largest of the market.

IDC said that it expects that spending on cloud IT infrastructure in 2015 will grow across all regions except Central and Eastern Europe, which is disturbed by political and economic turmoil that is having a negative impact on IT spending. For all three technologies - servers, storage and Ethernet switches - growth in spending will exceed 20%, with spending on servers growing at the highest rate, 25.5%, IDC said.

For the five-year forecast period, IDC said it expects that cloud IT infrastructure spending will grow at a compound annual growth rate (CAGR) of 15.1% and will reach $53.1bn by 2019, accounting for 46% of the total spending on enterprise IT infrastructure.

At the same time, spending on non-cloud IT infrastructure will decline at 1.7% CAGR. Spending on public cloud IT infrastructure will grow at a higher rate than spending on private cloud IT infrastructure - at 16.3% vs 13.2% CAGR. In 2019, IDC expects service providers will spend $33.6bn on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $19.4bn.

"Numerous IDC surveys indicate growing interest among enterprise customers to cloud deployments across multiple IT domains," said Natalya Yezhkova, research director for storage systems at IDC.

"End users often cite the agility of IT infrastructure and economic reasons as drivers for cloud adoption, but we also expect that the proliferation of next generation applications born and run in the cloud will fuel its further growth."

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