IT infrastructure spending (server, disk storage, and Ethernet switch) for public and private cloud in Europe, the Middle East, and Africa (EMEA) grew by 37.4 percent year-on-year to reach USD 1.4 billion in revenue in the second quarter of 2016, estimates IDC WW Quarterly Cloud Infrastructure Tracker.

The cloud-related share of total EMEA infrastructure revenue from servers, disk storage, and Ethernet switches grew seven percentage points compared to last year to exceed 22.5 percent in Q2 2016. In terms of storage capacity, cloud represented around 23.8 percent of total EMEA capacity in Q2 2016, with a 4.6 percent decline over the same period a year before. Looking at the market in euros, EMEA reported strong year-on-year user value growth (34.2%) in Q2 2016 in public and private cloud across servers, storage, and switches.

'IDC expects this market to reach a value of USD 10.5 billion by 2020 (from a five-year forecast), or 36.5 percent of the total market expenditure,' said Kamil Gregor, research analyst, European Infrastructure group, at IDC, 'Fueled by increasing maturity and adoption rates of many new cloud-dependent technologies, such as the Internet of Things, cloud continues to represent an area of tremendous growth for the European infrastructure sector.'

'In the first proper post-Brexit quarter, we still see no justification for significant adjustments of our cloud forecast in the region,' said Gregor. 'Cloud infrastructure vendors reported a brief disruption of their operations immediately after the referendum, but since then, business seems to have continued as usual. Enterprises may reevaluate where their cloud data is located if Brexit causes a mismatch of regulatory rules in the UK and the rest of the region in the long-term future.

'Multicloud continues to be a very successful deployment model throughout the region. IDC expects over 70 percent of Western European enterprises to adopt some form of multicloud by the end of next year. Regulatory differences between EU countries have been a major driver of multicloud adoption. They will be at least partially removed by the EU General Data Protection Regulation, which comes into effect in May 2018, although we do not expect this to significantly slow multicloud adoption in Western Europe,' observed Gregor.

Central and Eastern Europe, the Middle East, and Africa (CEMA) cloud infrastructure revenue grew by 18.8 percent year-over-year to USD 198.04 million in Q2 2016, benefitting from increased investments in both public and private cloud. The resumption of investments in IT infrastructure on the back of stabilization of the geopolitical situation surrounding Russia contributed to strong cloud infrastructure revenue growth in the Central and Eastern Europe (CEE) subregion, breaking a yearlong losing streak.

Cloud infrastructure spending in the CEMA region is estimated to be 17 percent of the total addressable server, storage, and networking hardware market, with public cloud accounting for about 46 percent of this share.


 

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