IT infrastructure spending for cloud to grow 19% this year, says IDC

spending on IT infrastructure products
Spending on IT infrastructure products including server, storage, and Ethernet switch for deployment in cloud will grow 18.9 percent to $38.2 billion in 2016.

IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker said this amount excludes double counting between storage and server.

In comparison, spending on enterprise IT infrastructure deployed in non-cloud environments will decline 4 percent in 2016, accounting for 62.8 percent, of end user spending.

Spending on private cloud IT infrastructure will grow 11.1 percent to $13.9 billion geared toward on-premises private cloud deployments. Spending on public cloud IT infrastructure will increase 14.1 percent in 2016 to $24.4 billion.

IDC said investments in cloud IT infrastructure will grow across all regions. As cloud service providers continue to expand their portfolio of offerings and customer reach, the public cloud segment will deliver the highest rate of IT spending growth in a majority of regions compared to private cloud and non-cloud environments.

Ethernet switches will grow at 26.8 percent, while spending on servers and storage will grow at 12.4 percent and 11.3 percent, respectively.

Spending on IT infrastructure for cloud environments will grow at 12.5 percent five-year compound annual growth rate (CAGR) to $57.8 billion in 2020. This will represent 47.9 percent of the total spending on enterprise IT infrastructure in 2020.

Spending on non-cloud IT infrastructure will decline at 1.3 percent CAGR during the same period.

Within the cloud segment, spending on public and private cloud IT infrastructure will experience CAGRs of 13.8 percent and 10.2 percent, respectively.

In 2020, service providers will spend $37.5 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $20.3 billion.