Cloud spending up 23 per cent year-on-year

cloud arrow going up
cloud arrow going up

Infrastructure investment is growing faster than software, report reveals

A report by IDC has revealed that cloud revenues are up 23 per cent year-on-year, with the majority being generated by infrastructure rather than software.

The results are based on figures from Q3 2015, when $7.6 billion (£5.33 billion) worth of revenues were reported by manufacturers of equipment such as servers, storage and switches.

Cloud infrastructure now accounts for 33.8 per cent of revenues in the entire cloud sector, up from 27.8 per cent in Q3 2014, with public cloud infrastructure leading the way, growing by 25 per cent compared to private cloud, which expanded 18.8 per cent.

“IDC continues to see healthy double-digit growth in cloud IT deployments in the market with an increasing preference for public cloud infrastructure,” said Kuba Stolarski, research director for computing hardware and platforms at IDC.

Non-cloud-related infrastructure revenues reduced by 3.2 per cent and, although this isn't as substantial a loss as cloud's gain, it demonstrates the migration from on-premises to cloud-based systems.

“Customers are modernising their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises," Stolarski added.

HPE, Dell and Cisco all showed big gains over the quarter, with HPE snatching 15.7 per cent of the share (its revenues rose 27 per cent) and Cisco and Dell coming joint second in the league table.

Western Europe saw the second biggest level of growth at 22.1 per cent, behind Asia Pacific, which grew 47.1 per cent year-on-year. The news was not as positive for Central and Eastern Europe, where revenues reduced by 10.2 per cent, although the reasoning for this was political unrest rather than companies shying away from new technologies.

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