IDC: Cloud is eating legacy systems

Cloud infrastructure spending rises as non-cloud hardware sales drop

it infrastructure
IDC Worldwide Quarterly Cloud IT Infrastructure Tracker, Q4 2015

New research from IDC shows that spending on infrastructure to run public and private clouds continues to grow at leaps and bounds as spending on non-cloud infrastructure decreases. 

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IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker tracks spending patterns of users and service providers, along with revenues of vendors to paint a picture of cloud adoption trends.

Infrastructure spending on public and private cloud technology – which includes servers, storage and Ethernet switching – grew 21.9% in 2015 to be a $29 billion industry. Cloud technology made up almost one-third (32%) of all IT infrastructure sales; that’s up from $28.6% in 2014.

Spending on non-cloud technology, while still larger than cloud buying, decreased 2.7%.

IDC says the top vendors for selling infrastructure to support private and public clouds were Hewlett Packard Enterprise, Dell and Cisco. Original Device Manufacturers (ODMs) sold more than each of those three vendors though. 

IDC expects cloud infrastructure to continue to eat into non-cloud technology spending to become a $38.2 billion market this year.

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Copyright © 2016 IDG Communications, Inc.