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Cloud IT Infrastructure To Draw More Shift From Traditional Infrastructure Spending In 2017:IDC

Cloud IT Infrastructure To Draw More Shift From Traditional Infrastructure Spending In 2017:IDC
There is anticipated year-on-year growth of 20.9% in the spending on IT infrastructure products such as server, enterprise storage, and Ethernet switches, put to use in cloud environments in 2017 at $46.5 billion, claims a new forecast of the International Data Corporation (IDC) in its report ‘Worldwide Quarterly Cloud IT Infrastructure Tracker’. 
According to the forecast, he major growth would be witnessed in the public cloud datacenters at an anticipated rate of 26.2% and this segment would also witness the bulk of the spending (65.3%). On the other hand, a growth of 12.7% is expected for 2017 in the off-premises private cloud environments segment which would account for 13% of the total cloud IT infrastructure spending. A 11.5% growth would also likely be seen in the on-premises private clouds which would also see the bulk of the spending (62.6%) made in the private cloud IT infrastructure segment, according to the forecast. 
In 2017, there is a forecast that the total spending on IT infrastructure for cloud environments would be $46.5 billion according to the IDC.
Conversely, a decline of 2.6% is forecast for 2017 in the spending for traditional, non-cloud, IT infrastructure globally. However, this segment would draw the majority (57.2%) of the total spending by end user on IT infrastructure products. This end user spending would be lower compared to the 62.4% achieved in 2016. This means that the share loss of this segment is faster compared to the earlier three years.
There is anticipated to be double digit growth in ion 2017 in the spending in all of the three technology segments in cloud IT environments. While there would be growth of 22.2% and 22.1%, for Ethernet switches and compute platforms respectively, there is an expected growth of 19.25 in the spending on storage platforms. All of the three cloud deployment models - private cloud on-premises, private cloud off-premises, and public cloud, would see rise in investments across te board.
It is anticipated that there would be a five-year compound annual growth rate (CAGR) of 12.0% in the spending on off-premises cloud IT infrastructure in the long term, according too the IDC. This spending is expected to touch $51.9 billion in 2021. Out of this figure, about 82.1% would be accounted for by public cloud datacenters and this segment is forecast to grow at 12.1% CAGR.
On the other hand, a CAGR of 11.7% is expected for spending on off-premises private cloud infrastructure. 11.7% CAGR is the expected growth rate of the combined on-premises and off-premises private cloud infrastructure and the IDC expects that this combined spending would exceed expenditure to be made on non-cloud IT infrastructure. In the same period, there would be a 10.8% CAGR growth in expenditure on on-premises private cloud IT infrastructure and a decline of 2.7% is expected in the spending on non-cloud IT (on-premises and off-premises combined).
"As adoption of public cloud services and private cloud deployments continue to spread around the world replacing traditional on-premises hardware-centric IT settings, overall market spending on servers, storage, and networking will follow this move," said Natalya Yezhkova, research director, Enterprise Storage. "The industry is getting closer to the point when cloud deployments will account for the majority of spending on IT infrastructure, which will be a major milestone embracing the benefits of service-centric IT."

Christopher J. Mitchell

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