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IT infrastructure spending to rise 12.4% in 2017, driven by the cloud
The insatiable demand for more public and private cloud services among enterprises will drive a 12.4 percent surge in information technology infrastructure spending this year, according to analyst firm International Data Corp.
IDC’s latest Worldwide Quarterly Cloud IT Infrastructure Tracker, released Wednesday, says spending on servers, storage and Ethernet switches should top $40.1 billion by the end of this year. Of that, almost 61 percent will be spent by companies looking to outfit public cloud hosting data centers.
IDC said spending on public cloud data centers will rise 13.8 percent year-over-year, while the amount spent on off-premises private cloud deployments will rise 11.9 percent in the same period.
According to Natalya Yezhkova, a research director tracking enterprise storage markets for IDC, the interest in hybrid and multicloud deployments has led to a marked change in IT spending patterns.
“The overall profile of spending on IT infrastructure in various deployment or location scenarios seen in 2016 will continue in 2017, with some differences in specific technology segments,” Yezhkova said. “Enterprise adoption of hybrid and multicloud IT strategies and the proliferation of cloud-native applications and areas such as the internet of things (IoT), which embrace a cloud-first approach to supporting IT resources, will fuel further increases in end-user spending on services-based IT.
“In turn, this move will be reflected in a shift of the overall spending on IT infrastructure from on-premise to off-premise deployments and from traditional IT to cloud IT,” she added.
IDC has been documenting this trend for a while now, where the amount of money spent on cloud-enabling technologies rises with each quarter, in contrast to spending non-cloud IT infrastructure investments, which continue its slow decline.
In fact, IDC said spending on non-cloud IT will fall by 4.6 percent this year, though it still accounts for the lion’s share with 58.7 percent of overall worldwide spending.
IDC said in its forecast that it expects this downward trend to continue for at least the next five years. It predicts spending on public cloud infrastructure to grow at a clip of 11 percent a year through 2021. Meanwhile spending on non-cloud IT technologies will decline at an annual rate of 3.1 percent over the same period.
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