Global IT Infrastructure Spending: Cloud to Hold 56% Share by 2022
It’s an open fact that the Cloud technology is riding high on market trend!
Adding to the scenario, here is another update that says the spending on cloud IT infrastructure will see a 31 percent year-on-year growth with a market value of USD 62.2 billion.
The latest research report by one of the leading market research firms found that vendor earnings through the sale of products supporting cloud IT infrastructure, both public and private cloud, saw a 48.4 percent Y-o-Y rise in Q2 of 2018.
Through such sales, the cloud IT infrastructure product vendors drew a total of USD 15 billion in revenues in the second quarter of the year.
Going into further details, overall expenditure on cloud IT infrastructure saw a two-fold rise over the last three years to more than USD 10 billion in Q2 2018, showing a 58 percent Y-o-Y rise.
Within the cloud market, the public cloud is going to see major traction by the end of 2018 at an annual rate of 36.9 percent, accounting to nearly 68 percent of the overall expected annual cloud IT infrastructure spending.
Meanwhile, private cloud has also seen a 28 percent rise in the second quarter of the current year reaching a USD 4.5 billion market and is expected to account to 14 percent of the overall cloud IT infrastructure spending by 2018 end.
Spending by Technology Segment
When it comes to segment-wise spending in the cloud IT infrastructure market, the overall spending on all technology segments is going to see a two-fold rise in 2018.
While Compute Platforms is poised to be the fastest growing segment at 46.6 percent, the Ethernet Switches and Storage Platform segments are going to see 18 percent and 19.2 percent Y-o-Y growth in 2018, respectively.
Almost all regions saw a double-digit growth in their cloud IT infrastructure markets in the second quarter of 2018.
Asia-Pacific (APAC) recorded the fastest revenue growth by 78.5 percent year-over-year, with Chinese cloud IT revenue witnessing a two-fold rise year-over-year at a growth rate of 96.4 percent and the rest of the countries (excluding Japan) having a 50.4 percent growth rate.
Latin America (47.4 percent), USA (44.9 percent) and Japan (35.8 percent) are among the other regions among the fastest growing in the second quarter of 2018.
Overall, the global cloud IT infrastructure spending is expected to grow at a five-year CAGR of 11.2 percent with USD 82.9 billion in revenue by 2022, holding a 56 percent share of the overall IT infrastructure spending.
Public cloud data centers are expected to hold a major share of 66 percent at an 11.3 percent CAGR and private cloud infrastructure at a CAGR of 12 percent, of the total cloud IT infrastructure revenue.
Downward Trend for Traditional Solutions
However, the traditional or non-cloud IT infrastructure is going to see a downward trend in the years to come. The traditional non-cloud IT infrastructure market saw a 21 percent growth in the last one year and stands at USD 16 billion in Q2 2018.
Overall, the non-cloud IT infrastructure market is going to see a 10.3 percent growth by the end of 2018 driven by the technology refresh cycle and will gradually come down by 2019.
While the traditional non-cloud market currently makes up 51.5 percent of the global IT infrastructure spending, the rate is expected to be 44 percent by 2022 for a 7 percent decline.
This losing trend of traditional non-cloud environments and increasing share of the cloud environment is going to be common across all regions.
“One of the tasks for enterprises now is not only to decide on what cloud resources to use but, actually, how to manage multiple cloud resources,” says Natalya Yezhkova, research director at IDC.