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Public Cloud, Data Centers and Services Driving Growth in Cloud Infrastructure Market

July 06, 2015

It’s already a given that the cloud infrastructure market is growing by leaps and bounds, fueled by trends like mobility, BYOD and big data. Just how much it has grown and is expected to grow though, is still pretty impressive, at least according to new data from IDC, with massive amounts of spending being allocated to building out data centers and cloud services.

The research firm has released its Worldwide Quarterly Cloud IT Infrastructure Tracker, revealing that spending on cloud IT infrastructure, which comprises servers, storage and Ethernet switches, is expected to reach $33.4 billion this year. Growing at a rate of 26.4 percent in 2015, this spending will account for a third of all IT infrastructure spending.

Spending on cloud infrastructure is growing at a healthy 16.8 percent year over year, with public cloud infrastructure spending making up the lion’s share, reaching $21.7 billion this year. Conversely, non-cloud IT infrastructure spending is not growing at all and is expected to remain flat this year at $67 billion.

Looking to the future, total spending on cloud infrastructure is expected to reach $54.6 billion by 2019, making up nearly half of all IT infrastructure expenditures. The growth will be attributed mainly to public cloud infrastructure, with providers expanding both their data centers and their service offerings and making significant investments in both.

Image via Shutterstock

"End users continue to evaluate various approaches to adopting cloud-based IT: some integrate public cloud service into their IT strategies, others choose to build their own private clouds or use third-party private cloud offerings, and some, seeing benefits in both, implement hybrid cloud strategies," said Natalya Yezhkova, research director, Storage Systems at IDC. "The breadth and width of cloud offerings only continue to grow, with an increasing universe of business- and consumer-oriented solutions being born in the cloud and/or served better by the cloud. This growing demand from the end user side and expansion of cloud-based offerings from service providers will continue to fuel growth in spending on the underlying IT infrastructure in the foreseeable future."

Edited by Dominick Sorrentino

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