Cloud Infrastructure Is Booming on Growing Demand for Services

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Vendor revenue from sales of server, storage, and Ethernet switches for cloud IT has recorded a 25.1% spike (year over year) to reach $6.3 billion in the first quarter of 2015, IDC reports.

The numbers are impressive, but those who keep their eyes peeled on the cloud market will undoubtedly notice a pattern here. According to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, this is actually the second wave of growth in the five quarters tracked by IDC year-over-year. Spending followed a similar pattern in 1Q15. Some numbers:

  • cloud infrastructure spending is at 30% of overall IT infrastructure spending this quarters
  • spending has increased by 26.4% (from the year-ago-quarter)
  • revenue from infrastructure sales for private cloud has grown 24.4% to $2.4 billion
  • sales for public cloud are up 25.5% to $3.9 billion
  • non-cloud IT infrastructure segment has recorded just 6.1% growth
  • servers experienced the highest sales growth at 28% for the private sector, and 33% for the public segment
  • storage sales have declined
  • Ethernet switches are up 1%

The only place on the Earth where revenues from cloud infrastructure are actually down is Europe. Currently affected by political and economical turbulence, the central and eastern parts of the Old Continent have reduced their overall IT spending. However, all other regions within Europe remain big spenders and have actually ramped up their efforts to solidify their respective cloud infrastructures.

As more and more companies transition their workloads onto cloud-based platforms, Cloud IT infrastructure is increasingly outpacing the overall IT infrastructure market by a considerable margin. The progress was recorded in equal amounts in both the private and public domains.

As IDC Research Manager Kuba Stolarski notes, “customers are [increasingly more] open to a broad array of hybrid deployment scenarios as they modernize their IT for the 3rd Platform, begin to deploy next-gen software solutions, and embrace modern management processes that enable agile, flexible, and extensible cloud platforms.”

We couldn’t have said it better ourselves. Cloud for the win! 😀

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