According to the International Data Corporation (IDC) Worldwide
Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud
Deployment, spending on compute and storage infrastructure products
for cloud deployments, including dedicated and shared IT
environments, increased 36.9% year over year in the first quarter
of 2024 (1Q24) to $33.0 billion. Spending on cloud infrastructure
continues to outgrow the non-cloud segment with the latter growing
by 5.7% in 1Q24 to $13.9 billion. The cloud infrastructure segment
experienced slower growth in unit demand of 11.4%, due to the
continued increase in average selling prices (ASPs) mostly related
to higher than usual GPU server shipments.
"Cloud infrastructure spending growth continues being driven by
the explosion of AI-related investments, which not only impact
servers but also started to have positive influence on enterprise
storage as well," said Juan Pablo Seminara, research director for
IDC's Worldwide Enterprise Infrastructure Tracker. "Even though
some caution still remains on the socio-political side, it has
become clear that AI investment plans are not slowing down in 2024
and will continue growing at a high rate this year and beyond.
Additionally, the improvement on economic prospects contributes to
a very positive spending outlook for 2024 and 2025 where
cloud-based spending will increase at double-digit pace."
Spending on shared (public) cloud infrastructure reached $26.3
billion in the quarter, increasing 43.9% compared to a year ago.
The shared cloud infrastructure category continues to hold the
largest share of spending compared to dedicated (private) cloud
deployments and non-cloud spending. In 1Q24, shared cloud accounted
for 56.1% of total infrastructure spending. The dedicated cloud
infrastructure segment saw lower growth of 15.3% year over year in
1Q24 to $6.7 billion.
For 2024, IDC is forecasting cloud infrastructure spending will
grow 26.1% compared to 2023 to $138.3 billion. Non-cloud
infrastructure is forecast to grow 8.4% to $64.8 billion. Shared
cloud infrastructure is expected to grow 30.4% year over year to
$108.3 billion for the full year. Spending on dedicated cloud
infrastructure is also expected to have double-digit growth in 2024
at 12.8% reaching $30.0 billion for the full year. The subdued
growth forecast for non-cloud infrastructure at 8.4% in 2024
reflects that even though most of the growth will come from cloud
spending, general non-cloud dedicated systems are set to recover
this year.
IDC's service provider category includes cloud service
providers, digital service providers, communications service
providers, hyperscalers, and managed service providers. In 1Q24,
service providers as a group spent $32.2 billion on compute and
storage infrastructure, up 37.9% from the prior year. This spending
accounted for 68.7% of the total market. Non-service providers
(e.g., enterprises, government, etc.) also increased their spending
to $14.7 billion growing 5.8% year over year. IDC expects compute
and storage spending by service providers to reach $132.2 billion
in 2024, growing at 26.2% year over year.
On a geographic basis, year-over-year spending on cloud
infrastructure in 1Q24 showed very positive results in general,
where only Latin America presented a decline of 2.8% while Western
Europe and Middle East & Africa were the only regions that grew
by single digits at 4.0% and 5.3% respectively. These results were
largely affected by political tensions that delayed investments
plans. The regions that showed solid double-digit growth were
Asia/Pacific (excluding Japan and China), Japan, Central &
Eastern Europe, USA, China (PRC), and Canada, where cloud spending
grew at 85.4%, 53.1%, 42.6%, 37.0%, 33.7%, and 16.1% year over
year, respectively. Most of the growth is related to large high
performance computing (HPC) and AI-based large projects, some of
which were delayed due to supply issues in the past.
Long term, IDC predicts spending on cloud infrastructure will
have a compound annual growth rate (CAGR) of 14.3% over the
2023-2028 forecast period, reaching $213.7 billion in 2028 and
accounting for 75.0% of total compute and storage infrastructure
spend. Shared cloud infrastructure spending will account for 77.5%
of the total cloud spending in 2028, growing at a 14.8% CAGR and
reaching $165.6 billion. Spending on dedicated cloud infrastructure
will grow at a CAGR of 12.6% to $48.2 billion. Spending on
non-cloud infrastructure will also rebound with a 3.6% CAGR,
reaching $71.4 billion in 2028. Spending by service providers on
compute and storage infrastructure is expected to grow at a 13.8%
CAGR, reaching $199.9 billion in 2028.
A graphic illustrating IDC's 2023-2028 forecast for enterprise
infrastructure spending by category (shared cloud, dedicated cloud,
and non-cloud) is available by viewing this press release on
IDC.com.
IDC's Worldwide Quarterly Enterprise Infrastructure Tracker:
Buyer and Cloud Deployment is designed to provide clients with a
better understanding of what portion of the compute and storage
hardware markets are being deployed in cloud environments. The
Tracker breaks out each vendors' revenue into shared and dedicated
cloud environments for historical data and provides a five-year
forecast. This Tracker is part of the Worldwide Quarterly
Enterprise Infrastructure Tracker, which provides a holistic total
addressable market view of the four key enabling infrastructure
technologies for the datacenter (servers, external enterprise
storage systems, and purpose-built appliances: HCI and PBBA).
Taxonomy Notes
IDC defines cloud services more formally through a checklist of
key attributes that an offering must manifest to end users of the
service.
Shared cloud services are shared among unrelated
enterprises and consumers; open to a largely unrestricted universe
of potential users; and designed for a market, not a single
enterprise. The shared cloud market includes a variety of services
designed to extend or, in some cases, replace IT infrastructure
deployed in corporate datacenters; these services in total are
called public cloud services. The shared cloud market also includes
digital services such as media/content distribution, sharing and
search, social media, and e-commerce.
Dedicated cloud services are shared within a single
enterprise or an extended enterprise with restrictions on access
and level of resource dedication and defined/controlled by the
enterprise (and beyond the control available in public cloud
offerings); can be onsite or offsite; and can be managed by a
third-party or in-house staff. In dedicated cloud that is managed
by in-house staff, "vendors (cloud service providers)" are
equivalent to the IT departments/shared service departments within
enterprises/groups. In this utilization model, where standardized
services are jointly used within the enterprise/group, business
departments, offices, and employees are the "service users."
For more information about IDC's Quarterly Enterprise
Infrastructure Tracker: Buyer & Cloud Deployment, 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 globe. Using proprietary tools
and research processes, IDC's Trackers are updated on a semiannual,
quarterly, and monthly basis. Tracker results are delivered to
clients in user-friendly Excel deliverables and on-line query
tools.
Click here to learn about IDC’s full suite of data products and
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About IDC
International Data Corporation (IDC) is the premier global
provider of market intelligence, advisory services, and events for
the information technology, telecommunications, and consumer
technology markets. With more than 1,300 analysts worldwide, IDC
offers global, regional, and local expertise on technology, IT
benchmarking and sourcing, and industry opportunities and trends in
over 110 countries. IDC's analysis and insight helps IT
professionals, business executives, and the investment community to
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version on businesswire.com: https://www.businesswire.com/news/home/20240628722904/en/
Lidice Fernandez +1 305-351-3057 lfernandez@idc.com Juan
Seminara +54-11-4590-2398 jseminara@idc.com Michael Shirer +1
508-935-4200 press@idc.com