UPDATED 20:21 EST / JULY 04 2022

CLOUD

IDC expects cloud spending to surpass noncloud infrastructure for first time this year

Spending on compute and storage infrastructure products for cloud deployments will surpass that of other scenarios for the first time later this year, according to a forecast by International Data Corp.

In its latest Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, IDC said such spending rose 17.2% in the first quarter from a year ago, to $18.3 billion.

Spending on shared cloud infrastructure, which refers to services shared among unrelated enterprises and consumers, rose 15.7%, to $12.5 billion, in the first quarter. Meanwhile, spending on dedicated cloud infrastructure, which refers to cloud services delivered as subscriptions or managed service agreements, rose 20.5%, to $5.9 billion.

By the end of the year, IDC reckons, enterprises will spend a combined $90.2 billion on cloud infrastructure services, representing growth of 22% from the previous year. Shared cloud infrastructure will account for $63.9 billion of that money, up 24.3%, while dedicated cloud infrastructure will make up $26.3 billion, up 16.8%.

At the same time, IDC said, noncloud infrastructure spending will rise by just 1.8%, to $60.7 billion. The analyst firm sees “continuously strong demand for shared cloud infrastructure” and that spending on such services will surpass that of non-cloud infrastructure for the first time by the end of the year.

In the long term, IDC expects spending on compute and storage cloud infrastructure to have a compound annual growth rate of 14.5% from 2021 to 2026, reaching $145.2 billion in 2026 and accounting for 69.7% of total compute and storage infrastructure spend.

In a second report, issued last week, IDC looked at how much money was being spent on infrastructure as a service, platform as a service, software as a service system infrastructure and regular software as a service.

IDC’s Worldwide Semiannual Public Cloud Services Tracker showed that the total revenue from all of these segments in 2021 jumped 29% from a year ago, to $408.6 billion. Microsoft Corp., which has offerings in all four deployment categories, accounted for 14.4% of that revenue, with Amazon Web Services Inc. came in second with a 13.7% share. Microsoft came out ahead of AWS because it has a much stronger portfolio of SaaS offerings. The SaaS segment generated $177.8 billion of cloud services revenue last year, representing 45.3% of the total.

IaaS sales accounted for $91.3 billion, up 35.6%, while PaaS revenue hit $68.2 billion, up 39.1%. SaaS system infrastructure software sales topped $71.2 billion, up 26.4%.

Image: bsdrouin/Pixabay

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