Increases expected despite first quarter slowdown
IT spending on public and private cloud infrastructure will increase by 15.5 percent this year to reach a total of $37.1 billion, according to the latest forecast from the IDC Worldwide Quarterly Cloud IT Infrastructure Tracker. While spending on traditional IT infrastructure will decline slightly — just over 4 percent — it will still account for the largest share of end user spending at about 63 percent.
Spending on private cloud IT infrastructure will grow by more than 10 percent over 2015 to reach $13.8 billion. More than 60 percent of this amount will be dedicated to the expansion of on-premises private cloud environments. Spending on public cloud IT infrastructure will increase concurrently, reaching a total of $23.3 billion.
Spending on cloud IT infrastructure in 2016 is set to increase in each global region. For combined cloud environments, spending on Ethernet will grow at the highest rate, 39.5 percent, while spending on server and storage will grow less than 15 percent each.
For the long-term forecast, IDC expects that spending on IT infrastructure for cloud environments will grow at a 13.1 percent compound annual growth rate (CAGR) to reach $59.5 billion in 2020. This number will represent nearly half of all spending on enterprise IT infrastructure. Spending on non-cloud IT infrastructure will decline just slightly, at a CAGR of 1.4 percent, during the same period. Within the cloud segment, spending on public and private cloud IT infrastructure will grow at 18.8 percent and 10.3 percent respectively.