Skip to main content

New Cloud Infrastructure Spend will Grow Rapidly in 2017

Cloud computing will gain significant new adoption in the large enterprise market, with growth coming from public cloud services and increased on-premises cloud IT infrastructure investment, as more CIOs execute their hybrid cloud strategies.

Total spending on IT infrastructure products -- server, storage, and networking -- for deployment in cloud environments will increase by 18.2 percent in 2017 to reach $44.2 billion, according to the latest worldwide market study by International Data Corporation (IDC).

Cloud Infrastructure Market Development

Of this spending, 61.2 percent will be on public cloud data centers, while off-premises private cloud environments will contribute 14.6 percent. Furthermore, spending on IT infrastructure for on-premises private cloud deployments will growth by 16.6 percent.

By comparison, spending on traditional -- i.e. non-cloud -- IT infrastructure will decline by 3.3 percent in 2017, but will still account for the largest share (57.1 percent) of overall enterprise spending.

"In the coming quarters, growth in spending on cloud IT infrastructure will be driven by investments done by new hyperscale data centers opening across the globe and increasing activity of tier-two and regional service providers," said Natalya Yezhkova, research director at IDC.


In 2017, spending on IT infrastructure for off-premises cloud deployments will experience double-digit growth across all regions in a continued strong movement toward utilization of off-premises IT resources around the world.

That said, 57.9 percent end user spending in 2017 will still go to on-premises IT infrastructure -- which combines on-premises private cloud and on-premises traditional IT investments. Within on-premises settings, all regions will see sustained movement toward private cloud deployments.

Ethernet switches will be fastest growing segment of cloud IT infrastructure, increasing 23.9 percent in 2017, while spending on servers and enterprise storage will grow 13.6 percent and 23.7 percent, respectively.

In all three technology segments, spending on private cloud deployments will grow faster than public cloud while investments on non-cloud IT infrastructure will decline.

Outlook for Cloud IT Infrastructure Investment

Long term, IDC expects that spending on off-premises cloud IT infrastructure will experience a five-year compound annual growth rate (CAGR) of 14.2 percent, reaching $48.1 billion in 2020. Public cloud data centers will account for 80.8 percent of this amount.

Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at a 13.9 percent CAGR and will surpass spending on non-cloud IT infrastructure by 2020.

Spending for on-premises private cloud IT infrastructure will grow at a 12.9 percent CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a CAGR of 1.9 percent during the same forecast period.

Popular posts from this blog

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c