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Cloud Infrastructure Spending Increased in Third Quarter of 2021 with Overall Growth Expected for 2021, According to IDC

Needham, Mass. – (work wire) – According to International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment, spending on compute and storage infrastructure products for cloud infrastructure, including dedicated and shared environments, increased 6.6% year-over-year in the third quarter of 2021 (Q3 of 21) to $18.6 billion. This increase resumes a trend of positive net annual spending growth per quarter, which saw a pause in the second quarter of 2021 when spending declined 1.9%. This comes after seven quarters of annual spending growth that began in the third quarter of 2019, highlighted by 38.4% growth in the second quarter of 2020 as the first global pandemic wave shut down businesses and countries causing a surge in investments in cloud services. and infrastructure. Investments in non-cloud infrastructure increased 7.3% year-on-year in Q321 to $14.6 billion, the third consecutive quarter to see an increase in spending year-over-year after a period of lower spending that began in Q2 2019. .

Spending on shared cloud infrastructure was $13 billion, an 8.6% increase over the third quarter of 2020, and a 6.6% increase over the previous quarter. This continues the year-over-year growth trend since Q4 2019, which stalled in the previous quarter (Q221) compared to Q2 2020 which saw a 55.1% increase in spending driven by higher demand for public cloud services in The first months of the year. epidemic. IDC expects to see consistently strong demand for shared cloud infrastructure with spending exceeding spending on non-cloud infrastructure in 2022. Spending on dedicated cloud infrastructure increased 13.4% year-over-year in Q3 of 21 to $5.6 billion, which is The highest annual increase since the first quarter of 2019 with 45.5% of this amount distributed to customer premises. IDC expects that spending on cloud environments will continue to exceed non-cloud spending during its forecast.

For the full year of 2021, IDC expects spending on cloud infrastructure to grow 8.3% compared to 2020 to reach $71.8 billion, while non-cloud infrastructure is expected to grow 1.9% to $58.4 billion after two years of decline. Shared cloud infrastructure is expected to grow 7.2% year-over-year to $49.7 billion for the full year. Spending on dedicated cloud infrastructure is expected to grow 10.7% to $22.2 billion for the full year.

As part of Tracker, IDC tracks different classes of service providers and the amount of computing and storage infrastructure that service providers purchase, including both cloud and non-cloud infrastructure. The service provider category includes cloud service providers, digital service providers, telecom service providers, and managed service providers. In Q321, service providers as a group spent $18.9 billion on computing and storage infrastructure, an increase of 10.2% over Q3 2020 and a 6.7% increase over Q221. This spending represented 57.1% of the total computing infrastructure market and storage. IDC expects spending on computing and storage by service providers to reach $72.6 billion for 2021, an increase of 7.4% compared to 2020.

Regionally, annual spending on cloud infrastructure increased as the level of growth varied across regions. The Asia/Pacific subregions, Canada, and Europe saw double-digit spending growth, while Latin America, the Middle East and Africa, and the United States experienced moderate single-digit increases in spending. The Asia/Pacific region (excluding Japan and China) showed the strongest annual increase in cloud infrastructure spending in Q321 at 64.3% while the US posted the weakest growth at 1.1%. For the full year, cloud infrastructure spending is expected to increase in all regions compared to 2020, particularly in the Asia/Pacific regions (excluding Japan), Canada and Central and Eastern Europe. The US is expected to show only marginal growth on an annualized basis of 0.4%.

In the long term, IDC forecasts that spending on cloud computing and storage infrastructure will have a compound annual growth rate (CAGR) of 12.4% over the 2020-2025 forecast period, reaching $118.8 billion in 2025 and representing 67.0% of total computing infrastructure spending. and storage. Shared cloud infrastructure will make up 70.9% of this amount, at a compound annual growth rate of 12.7%. Spending on dedicated cloud infrastructure will grow at a compound annual growth rate of 11.5%. Spending on non-cloud infrastructure will rebound in 2021 but will flat out at a CAGR of 0.5%, reaching $58.6 billion in 2025. Spending by service providers on computing and storage infrastructure is expected to grow at a rate of 1.3%, as It will reach $115.4 billion in 2025.

A graphic showing IDC’s 2020-2025 projections for worldwide enterprise infrastructure spending by type (shared cloud, dedicated cloud and non-cloud) is available by viewing this press release on IDC.com.

IDC’s global quarterly enterprise infrastructure tracker: Buyer and Cloud Deployment is designed to provide customers with a better understanding of the portion of the computing and storage device markets deployed in cloud environments. Tracker breaks down each vendor’s revenue into shared and dedicated clouds with historical data and provides a five-year forecast. This Tracker is part of the Worldwide Quarterly Enterprise Infrastructure Tracker, which provides a comprehensive overview of the market for the four main enabling infrastructure technologies for the data center (servers, enterprise external storage systems, and purpose-built hardware: HCI and PBBA).

Rating Notes

IDC defines cloud services more formally through a checklist of key features that the offering must demonstrate to the service’s end users.

Shared Cloud Services are shared between businesses and unrelated consumers; open to a largely unrestricted world of potential users; It is designed for a market, not for a single institution. The shared cloud market includes a variety of services designed to extend, or in some cases, replace the IT infrastructure deployed in corporate data centers; These services in the aggregate are called public cloud services. The shared cloud market also includes digital services such as media/content distribution, sharing, search, social media, and e-commerce.

custom cloud Services are shared within a single organization or extended organization with restrictions on access, level of resource dedication, and identified/controlled by the organization (and outside of the control available in public cloud offerings); It can be on site or off site; It can be managed by a third party or internal workers. In a dedicated cloud managed by internal employees, “vendors (cloud service providers)” are equivalent to IT departments/shared service departments within organizations/groups. In this usage model, where unified services are used jointly within the organization/group, business departments, offices and employees are the “users of the service”.

For more information on IDC’s quarterly Cloud IT Infrastructure Tracker, please contact Lidice Fernandez at lfernandez@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the world. Using proprietary tools and searches, IDC trackers are updated on a semi-annual, quarterly, and monthly basis. Tracker results are delivered to clients in easy-to-use Excel materials and online query tools.

Click here to learn about IDC’s full suite of data products and how you can take advantage of them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market information, advisory services and events for the information and communications technology and consumer technology markets. With more than 1,100 analysts worldwide, IDC provides global, regional and local expertise in technology, benchmarking and sourcing of IT standards, industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the leading provider of technology media, data and marketing services. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC blog for industry news and insights.

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