Home » IDC expects cloud infrastructure spending to surpass non-cloud for the first time this year

IDC expects cloud infrastructure spending to surpass non-cloud for the first time this year

by SiliconANGLE
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Spending on compute and storage infrastructure products for cloud deployments will surpass that of other scenarios for the first time later this year, according to a forecast by International Data Corp.

In its latest Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, IDC said such spending rose 17.2% in the first quarter from a year ago, to $18.3 billion.

Spending on shared cloud infrastructure, which refers to services shared among unrelated enterprises and consumers, rose 15.7%, to $12.5 billion, in the first quarter. Meanwhile, spending on dedicated cloud infrastructure, which refers to cloud services delivered as subscriptions or managed service agreements, rose 20.5%, to $5.9 billion.

By the end of the year, IDC reckons, enterprises will spend a combined $90.2 billion on cloud infrastructure services, representing growth of 22% from the previous year. Shared cloud infrastructure will account for $63.9 billion of that money, up 24.3%, while dedicated cloud infrastructure will make up $26.3 billion, up 16.8%.

At the same time, IDC said, noncloud infrastructure spending will rise by just 1.8%, to $60.7 billion. The analyst firm sees “continuously strong demand for shared cloud infrastructure” and that spending on such services will surpass that of non-cloud infrastructure for the first time by the end of the year.

In the long term, IDC expects spending on compute and storage cloud infrastructure to have a compound annual growth rate of 14.5% from 2021 to 2026, reaching $145.2 billion in 2026 and accounting for 69.7% of total compute and storage infrastructure spend.

In a second report, issued last week, IDC looked at how much money was being spent on infrastructure as a service, platform as a service, software as a service system infrastructure and regular software as a service.

IDC’s Worldwide Semiannual Public Cloud Services Tracker showed that the total revenue from all of these segments in 2021 jumped 29% from a year ago, to $408.6 billion. Microsoft Corp., which has offerings in all four deployment categories, accounted for 14.4% of that revenue, with Amazon Web Services Inc. came in second with a 13.7% share. Microsoft came out ahead of AWS because it has a much stronger portfolio of SaaS offerings. The SaaS segment generated $177.8 billion of cloud services revenue last year, representing 45.3% of the total.

IaaS sales accounted for $91.3 billion, up 35.6%, while PaaS revenue hit $68.2 billion, up 39.1%. SaaS system infrastructure software sales topped $71.2 billion, up 26.4%.

Image: bsdrouin/Pixabay

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