Business Hilights
Tracking Nigeria's Headline Business News Online

Public cloud data centres to drain IT infrastructure budget this year—IDC

Latest report by the International Data Corporation’ (IDC’s) on IT infrastructure has revealed that much of the IT spending this year will be done by public cloud data centres including servers, enterprise storage and Ethernet switches for deployment in cloud environments. The increase when compared with last year will rise to 18.2 per cent to hit $44.2bn.

IDC report noted that among all the expected expenses, spending on Ethernet switches will be the fastest growing segment of cloud IT infrastructure spending, increasing 23.9% in 2017, while spending on servers and enterprise storage will grow 13.6% and 23.7%, respectively.

IDC said “In the coming quarters, growth in spending on cloud IT infrastructure will be driven by investments done by new hyper-scale data centres opening across the globe, and increasing activity of tier-two and regional service providers,” says Natalya Yezhkova, research director for storage.

Public cloud data centres will account for 80.8% of this amount. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at a 13.9% CAGR and will surpass spending on non-cloud IT infrastructure by 2020.

“Another significant boost to overall spending on cloud IT infrastructure will be coming from on-premises private cloud deployments, as end-users continue gaining knowledge and experience in setting up and managing cloud IT within their own data centres,” adds Yezhkova.

Besides, the IDC also expects spending on IT infrastructure for off-premises cloud deployments to experience double-digit growth across all regions. However, the majority of 2017 end-user spending will still be done on on-premises IT infrastructure, which combines on-premises private cloud and on-premises traditional IT.