Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 14.9 percent year-over-year in the first quarter of 2017 (1Q'17), reaching USD 8 billion.
Cloud IT infrastructure sales as a share of overall worldwide IT spending climbed to 39 percent in 1Q'17, a significant increase from 33.9 percent a year ago, states IDC. Revenue from infrastructure sales to private cloud grew by 6.0 percent to USD 3.1 billion and to public cloud by 21.7 percent to USD 4.8 billion. In comparison, revenue in the traditional (non-cloud) IT infrastructure segment decreased 8.0 percent year-over-year in the first quarter of the year. Private cloud infrastructure growth was led by Ethernet switch at 15.5 percent year-over-year growth, followed by storage at 10.0 percent and server at 2.1 percent. Public cloud growth was led by storage, which after heavy declines in 1Q'16 grew 49.5 percent year-over-year in 1Q'17, followed by Ethernet switch at 22.7 percent and server at 8.7 percent. In traditional IT deployments, server declined the most (9.3 percent year-over-year), with Ethernet switch and storage declining 4.4 percent and 6.1 percent, respectively.
From a regional perspective, vendor revenue from cloud IT infrastructure sales grew fastest in Canada at 59.1 percent year-over-year in 1Q'17 off a small base (overall cloud IT infrastructure market in Canada was just under USD 100 million in 1Q'17), followed by Asia/Pacific (excluding Japan) at 18.7 percent, Japan at 15.3 percent, the United States at 15.1 percent, Middle East & Africa at 13.2 percent, Western Europe at 8.9 percent, Latin America at 7.8 percent, and the Central and Eastern Europe at 7.2 percent.