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Asia-Pacific and North America Lead Cloud IT Market

Vendors that are still focused primarily on the traditional data center environment will likely continue to experience shrinking market share, as cloud computing applications gain new momentum -- which, in turn, generates more demand for different IT infrastructure.

According to International Data Corporation’s (IDC), vendor revenue from sales of infrastructure products (i.e. server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew by 25.7 percent year-over-year to $6.9 billion in the second quarter of 2015 (2Q15).

The overall share of cloud IT infrastructure grew by 31.4 percent in 2Q15 -- that's up from 26 percent a year ago. Revenue from infrastructure sales to private cloud grew by 19.5 percent to $2.8 billion, and to public cloud by 30.4 percent to $4.1 billion.

In comparison, revenue in the traditional (non-cloud) IT infrastructure segment decreased by -3.5 percent year over year in the second quarter, with declines in all of the three primary technology segments -- servers, storage and Ethernet switch.

All three cloud computing technology markets showed strong year-over-year growth in both private and public cloud segments, with Ethernet switches experiencing the highest growth in private cloud at 30.1 percent and servers with the highest growth in public cloud at 36.6 percent.

"Cloud IT deployments continue to drive overall IT infrastructure growth, as customers modernize their workload portfolios onto a broad array of hybrid deployment scenarios," said Kuba Stolarski, research director at IDC.


IDC believes that as cloud service providers continue to expand their data center footprints to meet growing cloud services demand, enterprises will increasingly rely on a variety of X-as-a-Service offerings and traditional hosting to help meet the performance, manageability, time to deployment, and TCO requirements of their organizations.

Besides, both private and public clouds will continue to see growing demand from customers who look to optimize their workload deployments based on their own uniquely and varied use-case requirements.

At the regional level, vendor revenues from cloud IT infrastructure sales grew fastest within Japan at 64.8 percent year over year, Asia-Pacific (excluding Japan) at 49.9 percent, Canada at 40.0 percent, and the U.S. market at 23.5 percent.

However, according to the IDC assessment, Central and Eastern Europe declined at -18.0 percent year over year, as the region continues to go through political and economic turmoil, which of course impacts overall IT spending.

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