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Cloud IT Infrastructure Growth Continues to Blossom

Hardware vendor revenue from sales of infrastructure products  -- including server, storage, and ethernet switches -- for all cloud computing use-cases, grew by 25.1 percent year over year to nearly $6.3 billion in the first quarter of 2015 (1Q15).

This was the second highest growth in the five quarters of tracking year-over-year revenue growth, and the second largest in terms of the total spending in nine quarters, according to findings from the latest worldwide market study by International Data Corporation (IDC).

Cloud IT infrastructure spending climbed to nearly 30 percent of overall IT infrastructure spending in 1Q15 -- that's up from 26.4 percent a year ago.

Revenue from infrastructure sales for private cloud grew 24.4 percent year over year to $2.4 billion while sales for public cloud grew 25.5 percent to $3.9 billion.

In comparison, the non-cloud IT infrastructure segment increased by 6.1 percent in the first quarter, largely driven by increased sales of servers while storage sales declined and sales of Ethernet switches grew by just 1 percent.


All three technology markets showed strong year-over-year growth in both private and public cloud segments, with servers experiencing the highest growth at 28 percent and 33 percent, respectively.

"Cloud IT infrastructure growth continues to outpace the growth of the overall IT infrastructure market, driven by the transition of workloads onto cloud-based platforms," said Kuba Stolarski, research manager at IDC.

Both private and public cloud infrastructures have been growing at a similar pace, suggesting that customers are craving a broad array of open hybrid cloud deployment scenarios, as they modernize their legacy IT environment.

This hybrid scenario is the most pervasive trend, while organizations actively deploy next-generation software solutions, and embrace comprehensive management processes that enable agile, flexible, and extensible cloud platforms.

At the regional level, vendor revenues from cloud IT infrastructure sales declined only in Central and Eastern Europe, which is experiencing political and economic turmoil that impacts overall IT spending.

According to the IDC assessment, in all other regions year-over-year growth in IT infrastructure sales for public and private cloud remained strong and even accelerated compared to growth rates in the previous quarter.

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