Spending on Cloud IT infrastructure products such as server, enterprise storage, and Ethernet switches will increase 16.2 percent in 2016 to $37.4 billion, said IDC.
Public cloud datacenters, at 18.6 percent annual growth, will account for 62.5 percent of this spending.
Spending on IT infrastructure deployed in off-premises cloud environments — public and private — will reach $28.4 billion in 2016.
Spending on enterprise IT infrastructure deployed in traditional, non-cloud, environments will dip 1.8 percent in 2016, accounting for 63.1 percent of end user spending. All figures exclude double counting between server and storage, said IDC.
In 2016, spending on IT infrastructure for off-premises cloud deployments is expected to see double-digit growth across all regions, indicating strong movement toward off-premises IT resources around the world.
In on-premises settings, spending on IT infrastructure for private clouds will increase in all regions while spending on non-cloud IT will decline in all but one region.
Of the spending on Cloud IT infrastructure (on- and off-premises combined), spending on Ethernet switches will grow at 41.2 percent, while spending on server will grow 16.3 percent and storage will achieve 4.1 percent growth.
IDC expects that spending on IT infrastructure for cloud will grow at a five-year compound annual growth rate (CAGR) of 13.6 percent to $60.8 billion in 2020, or 49.7 percent of the total spending on enterprise IT infrastructure.
IDC said off-premises cloud environments (public and private) will account for 77.6 percent of this amount. Spending on public cloud IT infrastructure will grow at 15 percent CAGR, while spending on non-cloud IT will decline at 1.8 percent CAGR.
“As public cloud data centers represent the major segment of off-premises IT infrastructure deployments, spending done by this segment is closely tied to spending by public cloud service providers, in particular, hyperscale SPs,” Natalya Yezhkova, research director, Storage Systems, said.