Cloud IT Infrastructure

In the third quarter of 2018, for the first time, quarterly revenue from cloud products exceeded that of traditional IT sales, accounting for 50.9% of total global IT infrastructure provider revenue, compared to 43.6 % one year earlier.

According to the IDC Worldwide Quarterly Cloud IT Infrastructure Tracker, revenue for vendors of cloud IT infrastructure products (server, storage, and Ethernet interconnect products), including public and private, grew 47.2% over a year in the third quarter of 2018, reaching $16.8 billion.

The research firm also raised its forecast for total cloud spending (vendor revenue plus distribution channel margins) in 2018 to $65.2 billion with year-over-year growth of 37.2%. .

The Asia/Pacific region drives the market

Quarterly spending on public cloud infrastructure more than doubled over the past two years to $12.1 billion in Q3 2018 and grew 56.1% year-on-year, while spending on private cloud infrastructure grew at half that rate, or 28.3%, to 4.7 billion.

All regions of the world recorded double-digit cloud infrastructure revenue growth in the third quarter of 2018. Revenue growth was fastest in Asia/Pacific (excluding Japan) at 62 .6% YoY, with China posting an even higher growth rate of 88.7%. Other fastest growing regions in Q3 2018 included Japan (48.2%), the United States (44.2%) and Canada (43.4%).

The public cloud is growing faster than the private cloud

Since 2013, when IDC began tracking IT infrastructure deployments across different environments, public cloud has accounted for the majority of spending on cloud computing infrastructure. IDC predicts that this share will peak at 68.8% in 2018 and that public cloud spending will grow at an annual rate of 44.7%, while private cloud spending will grow 23.3% year over year. to another in 2018.

The growth rate of the traditional IT infrastructure segment (excluding cloud) slowed compared to the first half to 14.8%, “which is still exceptional for this market segment”, comments the report.