Global Cloud IT Infrastructure Tapped 21.9% Growth Marking $29.0 Billion in 2015 – Reports

Cloud is taking the rift from traditional business relations, with alone flaunting double digit growth in maximum domains of its services. Latest reports of the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 21.9% year over year to $29.0 billion in 2015, with vendor revenue for the fourth quarter (4Q15) growing 15.7% to $8.2 billion.

Private cloud growth was led by Ethernet switch with 19.6% growth. In public cloud, Ethernet switch led the way with 56.9% year-on-year growth, while public cloud revenue from server grew 28.9% year on year in 4Q15. For the full year, server revenue in private cloud grew by 23.0% year on year, while Ethernet switch revenue in public cloud grew by 36.6% during the same period.

Compared to overall IT infrastructure spending, the share of cloud IT infrastructure sales climbed to 32.2% in 4Q15, up from 28.6% a year ago. Revenue from infrastructure sales to private cloud grew by 17.5% to $3.3 billion, and to public cloud by 14.6% to $4.9 billion.

“The cloud IT infrastructure market continues to see strong double-digit growth with faster gains coming from public cloud infrastructure demand,” said Kuba Stolarski, Research Director for Computing Platforms at IDC. “End customers are modernizing their infrastructures along specific workload, performance, and TCO requirements, with a general tendency to move into 3rd Platform, next-gen technologies. Options on and off premises continue to expand, along with open platforms that enhance hybrid capabilities for a variety of use cases. Public cloud as-a-service offerings also continue to mature and grow in number, allowing customers to increasingly use sophisticated, mixed strategies for their deployment profiles. While the ice was broken a long time ago for public cloud services, the continued evolution of the enterprise IT customer means that public cloud acceptance and adoption will continue on a steady pace into the next decade.”

IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2016

From a regional perspective, vendor revenue from cloud IT infrastructure sales spurred in Japan at 50.0% year over year in 4Q15, followed by Asia/Pacific (excluding Japan) at 38.7%, Western Europe at 30.5%, Canada at 23.5%, and the United States at 6.6%. Central and Eastern Europe declined 9.3% year over year as the region continues to go through political and economic turmoil, which impacts overall IT spending.

IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2016

Dell and Cisco both ranked number 2 in 4Q15, and IBM and NetApp both ranked number 5 in 2015 in a statistical tie.