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

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Upside for New 5G Network Transport Infrastructure

The global mobile communication sector is in the midst of a significant network infrastructure upgrade to support the introduction of new high-bandwidth and low-latency broadband service offerings.  Telecom service provider data centers have an important role in fifth-generation (5G) network deployments. Providers undergoing their transition to Stand-Alone (SA) 5G must understand the technical demands of telco data centers and the key enablers of those offerings. According to the latest worldwide market study by ABI Research, the major prerequisites of 5G and the emerging transport solutions would help operators position themselves to successfully capitalize on the new revenue opportunities from delivering differentiated 5G connectivity services. 5G Transport Network Market Development "The rise of the telco data center has a high degree of confluence with the requirements of SA 5G architectures. SA 5G and its increasing reliance on telco data centers can be attributed to the incr