Skip to main content

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.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Secure Microcontroller Market to Reach $2.2 Billion

In spite of the volatile global semiconductor industry being plagued by ongoing macroeconomic and political disruption issues, the secure microcontroller (MCU) market should continue to prosper. While the forecasted total available market has contracted -- especially in the smart home, retail, advertising, and supply chain spaces -- secure MCU shipments will likely be temporarily affected.  According to the latest worldwide market study by ABI Research, the secure microcontrollers market will grow to reach $2.2 billion by 2026. Secure Microcontroller Market Development "In part, this is due to the niche nature of security demand which commands a higher value proposition," says Michela Menting, research director at ABI Research . In the short term, potential supply chain issues due to trade embargoes and global COVID-19 pandemic quarantines at manufacturing sites will affect availability. Yet, demand for security, especially in general purpose microcontrollers, will ensure the