Total spending on IT infrastructure products for deployment in cloud environments will increase 12.4 percent year-over-year in 2017 to USD 40.1 billion, estimates IDC. Public cloud datacenters will account for the majority of this spending (60.7 percent) and will grow at the fastest rate year-over-year (13.8 percent). Off-premises private cloud environments will represent 14.9 percent of overall spending and will grow 11.9 percent year-over-year. On-premises private clouds will account for 62.2 percent of spending on private cloud IT infrastructure and will grow 9.6 percent year-over-year in 2017.

Increased spending on cloud IT infrastructure and decreasing investments in noncloud IT infrastructure will be a common theme for all regions. Worldwide spending on traditional, noncloud, IT infrastructure will decline 4.6 percent in 2017 accounting for 58.7 percent of the overall end-user spending on IT infrastructure products across the three segments, down from 62.6 percent in 2016.

In cloud IT environments, ethernet switches will be the fastest growing technology segment with 25.8 percent year-over-year growth in 2017, while spending on servers and enterprise storage will grow 9.1 percent and 12.0 percent, respectively. These growth rates include double counting between server and storage to fully represent each of the technology segments. In all three technology segments, spending on IT infrastructure deployed off-premises will grow in 2017 while spending on on-premises environments will decline.

Spending on off-premises cloud IT infrastructure will have a compound annual growth rate of 11.0 percent, reaching USD 45.7 billion in 2021. Public cloud datacenters will account for 79.8 percent of this amount with an 11.0 percent CAGR, while spending on off-premises private cloud infrastructure will increase at an 11.3 percent CAGR. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will have a five-year CAGR of 10.9 percent and by 2020 will surpass spending on non-cloud IT infrastructure. Spending on on-premises private cloud IT infrastructure will grow at a 10.5 percent CAGR, while spending on non-cloud IT will decline at 3.1 percent CAGR during the same period.


 

Smartindia

India m2m-20171102

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