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Report: global cloud spending poised to lap non-cloud IT spending

Combined with on-premises private cloud, overall global spending on cloud IT infrastructure will grow at an 11.7 percent CAGR and by 2020 will surpass spending on non-cloud IT infrastructure.

Jeff Rowe | Feb 06, 2018 12:00 am

Hybrid IT deployments continue to gain favor with CIOs and CTOs, but cloud computing will now drive a greater share of the ongoing investment in business technology, including in healthcare.

That’s according to a recent worldwide cloud market study by International Data Corporation (IDC), which found that total spending on IT infrastructure products for deployment in cloud environments reached a total of $46.5 billion in 2017, with year-over-year growth of 20.9 percent.

"As adoption of public cloud services and private cloud deployments continue to spread around the world replacing traditional on-premises hardware-centric IT settings, overall market spending on servers, storage, and networking will follow this move," said Natalya Yezhkova, research director, Enterprise Storage. "The industry is getting closer to the point when cloud deployments will account for the majority of spending on IT infrastructure, which will be a major milestone embracing the benefits of service-centric IT.”

Worldwide spending on traditional - i.e. non-cloud - IT infrastructure is expected to decline by 2.6 percent in 2017, but will still account for 57.2 percent of total spending on IT infrastructure products -- that's down slightly from 62.4 percent in 2016.

Hosted off-premises private cloud environments will represent 13 percent of cloud IT infrastructure spending, growing at 12.7 percent year-over-year. On-premises private clouds will account for 62.6 percent of spending on private cloud IT infrastructure, and will grow 11.5 percent year-over-year in 2017.

Long-term, IDC expects spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate (CAGR) of 12 percent, reaching $51.9 billion in 2021. Public cloud data centres will account for 82.1 percent of this amount growing at a 12.1 percent CAGR while spending on off-premises private cloud infrastructure will increase at a CAGR of 11.7 percent.