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

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without