Monday, 14 January 2019 10:38

Public cloud IT spend exceeds traditional revenue in 3Q18

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Public cloud IT spend exceeds traditional revenue in 3Q18 Pixabay

Public cloud IT infrastructure spending in a quarter surpassed traditional IT infrastructure revenues for the first time in 2018, the IT market intelligence firm IDC says.

The company said in a blog post that in 3Q18, revenue from IT infrastructure product sales into cloud environments surpassed revenues from sales into traditional IT environments, accounting for 50.9% of the total, up from 43.6% a year ago.

"However, for the full year 2018, spending on cloud IT infrastructure will remain below the 50% mark at 47.4%," the company said.

"Spending on all three technology segments in cloud IT environments is forecast to deliver double-digit growth in 2018. Compute platforms will be the fastest growing at 59.1%, while spending on Ethernet switches and storage platforms will grow 18.5% and 20.4%, respectively."

Spending on public cloud IT infrastructure reached US$12.1 billion in the third quarter of 2018, more than doubling over the previous two years and growing 56% year-on-year.

idc cloud

In contrast, private cloud infrastructure grew at half this rate or 28.3%, yielding a figure of US$4.7 billion.

"The first three quarters of 2018 were exceptional for the IT infrastructure market across all deployment environments and the increase in IT infrastructure investments by public cloud data centres was especially strong driven by the opening of new data centres and infrastructure refresh in existing data centres," said Natalya Yezhkova, research director, IT Infrastructure and Platforms.

"After such a strong year we expect some slowdown in 2019 as the overall market cools down and some cloud providers work through adjustments in their supply chain. However, IDC expects the shift in IT infrastructure spending toward cloud environments will continue."

Table: courtesy IDC


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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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