A third of all IT infrastructure spending now goes to the cloud


The analysts from International Data Corp. (IDC) have just published their latest Worldwide Quarterly Cloud IT Infrastructure Tracker, and it shows that around a third of all IT infrastructure spending is now being thrown at the cloud.

According to IDC, enterprises spent a total of $7.6 billion cloud IT infrastructure in the third quarter of 2015, compared to just $6.15 billion spent in the same quarter last year. IDC says that represents 33.8 percent of all spending on IT infrastructure, and it means cloud spending has grown by 15 percent relative to on-premises IT infrastructure spending in the last 12 months.

IDC defines “IT infrastructure” as servers, storage and Ethernet switches.

The public cloud accounted for the lion’s share of cloud spending at $4.6 billion, a 25.9 percent increase from one year ago. This compares to just $2.9 billion on private cloud spending, which was up 18.8 percent. Hence, the public cloud seems to be growing much faster than the private cloud.

By comparison, on-premises IT infrastructure spending totaled $14.9 billion for the quarter, or 66.2 percent of the overall market. This means cloud is still in the minority, although it is fast catching up.

As far as the vendors go, Hewlett-Packard Enterprise (HPE) sits at the top of the tree with $1.184 billion in revenue over the last quarter and a 15.7 percent share of the market, followed by Dell Inc. and Cisco Systems Ltd. with $783 million and $781 million in revenues, and 10.4 percent and 9.7 percent market shares, respectively.

IDC Cloud Infrastructure spending

The chart also shows how Original Design Manufacturers (ODMs) and “others” dominate the market overall with a combined $3.54 billion in revenues and 46.9 percent market share.

The leading vendors are all keenly promoting the idea of the hybrid cloud while at the same time, clinging on to their legacy on-premises businesses with an iron grip. Unfortunately for them, the evidence suggests that no matter how vigorously they try and hold on, they’re ultimately going to lose their grip. The only question is, how long will it take?

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