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AFCOM, IDC Studies Assess Cloud, Data Center Spending Trends

April 20, 2018

AFCOM’s last month issued a State of the Data Center Industry study suggesting an increase in ownership, renovations, and building. And this month IDC published its Worldwide Quarterly Cloud IT Infrastructure Tracker, which reveals total spending on IT infrastructure products for deployment in cloud environments is on track to reach $52.3 billion in 2018.

The AFCOM study turned up the following results:

• 58% of respondents currently own between two and 9 data center facilities

• 19% own 10 or more data centers

• The average number of data centers each organization manages is around 8.1

• On average, 5.3 data centers will be renovated per organization

• The average number of data centers managed will increase to 10.2 per organization over the next three years.

• Over three years, an average of 12.8 data centers per organization will be renovated.

There is also increasing uptake of distributed IT and edge computing in data centers, AFCOM says. The AFCOM report also suggests that “leading organizations and data center leaders are actively deploying” all-flash storage. And it talks about adoption of BYOD models, hyperconverged infrastructure, and SD-WAN technology. It also notes the need for more talent related to data centers.

As for the IDC study noted earlier, if says that global spending on non-cloud, IT infrastructure will decline by 2.0% in 2018 – a faster share loss than in the previous three years. But it will still account for most (54.7%) of end user IT infrastructure product spending.

Meanwhile, cloud IT environment spending will grow at double-digit rates next year in all areas but storage. (Storage platforms will grow at 6%.) However, Ethernet switches will grow at 20.9%, and compute platforms will see 12.4 growth.

“Long-term, IDC expects spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate of 10.8%, reaching $55.7 billion in 2022,” the research firm says. “Public cloud data centers will account for 83.6% of this amount growing at a 10.6% CAGR while spending on off-premises private cloud infrastructure will increase at a CAGR of 11.4%.”

Edited by Maurice Nagle

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