Spending on IT infrastructure products such as server, enterprise storage, and Ethernet switches for deployment in cloud will increase 15.5 percent to reach $37.1 billion in 2016, said IDC.
This amount excludes double counting between storage and servers.
In comparison, spending on enterprise IT infrastructure deployed in non-cloud will dip 4.4 percent, accounting for 63.4 percent. Spending on private cloud IT infrastructure will grow 10.3 percent to $13.8 billion with more than 60 percent of this amount contributed by on-premises private cloud environments. Spending on public cloud IT infrastructure will increase 18.8 percent to $23.3 billion, said IDC.
All regions will increase spending on cloud IT infrastructure in 2016 with investments in public cloud growing at a faster rate than investments in private cloud IT infrastructure. For cloud environments combined, growth in spending on Ethernet switches will be 39.5 percent, server will be 11.4 percent and storage will be 14.2 percent.
IDC expects that spending on IT infrastructure for cloud environments will grow at 13.1 percent compound annual growth rate (CAGR) to $59.5 billion in 2020. This will represent 48.7 percent of the total spending on enterprise IT infrastructure.
Spending on non-cloud IT infrastructure will decline 1.4 percent CAGR. Within the cloud segment, spending on public and private cloud IT infrastructure will grow at 18.8 percent and 10.3 percent CAGR respectively.
In 2020, IDC expects public cloud service providers (CSPs) will spend $38.4 billion on IT infrastructure for delivering services, while spending on private cloud IT infrastructure will reach $21.1 billion.
“Despite weakness in hyperscale CSP demand for IT infrastructure products in the first quarter, we expect spending on public cloud to increase in the second half of the year,” said Natalya Yezhkova, research director, Storage Systems at IDC.
IDC said the economic and financial volatility in some regions will push demand further as increasing sophistication of public cloud offerings allows organizations to fulfil their needs across IT domains while Opex-oriented pricing models provide some relief to tightening IT budgets.