Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud

    Hyperscale Environments Driving Cloud IT Infrastructure Market

    By
    Jeff Burt
    -
    October 10, 2016
    Share
    Facebook
    Twitter
    Linkedin
      Cloud Infrastructure

      Hyperscale service providers will drive growth in spending in the global cloud IT infrastructure market this year, which is expected to show an increase of 16.2 percent from 2015, according to analysts with market research firm IDC.

      In a report this month, analysts said spending on IT infrastructure—including servers, enterprise storage products and Ethernet switches—for cloud deployments will hit $37.4 billion in 2016, with public cloud data centers by service providers like Amazon Web Services, Google and Microsoft accounting for 62.5 percent of the money spent.

      Overall spending on IT infrastructure for off-premises cloud environments—both public and private—will reach $28.4 billion, while the money spent on enterprise IT infrastructure technologies that are deployed in traditional, non-cloud environments will fall 1.8 percent year-over-year. However, they will still account for the largest share—63.1 percent—of end user spending.

      “Cloud is one of the major options considered by end users as they think about optimization of their IT operations and utilization of on-site and off-site resources,” Natalya Yezhkova, research director for IDC’s Storage Systems unit, said in a statement. “This demand for cloud services will continue to drive the underlying shift in IT infrastructure spending from on-premises to off-premises deployments. As public cloud data centers represent the major segment of off-premises IT infrastructure deployments, overall spending done by this segment is closely tied to spending by public cloud service providers, in particular, hyperscale SPs.”

      IDC’s numbers mirror similar trends found by other research firms. Synergy Research Group analysts in September reported that for the last nine quarters, total spending on data center infrastructure—which includes servers, operating systems, storage and networking gear, network security and virtualization software—has averaged about $29 billion, and increasingly is being driven by cloud deployments.

      “While total spending on data center infrastructure remains relatively flat, cloud share of that spending continues to rise as an ever-increasing portion of computer workloads migrate to either public or private clouds,” Jeremy Duke, founder and chief analyst at Synergy Research Group, said in a statement. “We are also seeing that within the cloud infrastructure market, hyperscale cloud operators are accounting for an ever-larger share of overall [capital expenditure]. This is a trend which is not going to change any time soon.”

      According to Synergy, Hewlett Packard Enterprise, Cisco Systems and Microsoft were the top vendors in the three primary segments—private cloud hardware, public cloud hardware and cloud infrastructure software—but a combined Dell-EMC would have come in second in private cloud and third in public cloud hardware.

      According to IDC analysts, spending on IT infrastructure for off-premises and on-premises clouds will show double-digit growth across all regions, while spending on on-premises, non-cloud IT will fall in all but one region.

      Looking down the road, they said spending on cloud IT infrastructure over the next five years will grow 13.6 percent a year, to $60.8 billion by 2020, accounting for 49.7 percent of the total spending on enterprise IT infrastructure. Public clouds will make up 77.6 percent of the total spend by 2020, and spending will grow 15 percent a year. Spending on non-cloud IT will fall 1.8 percent a year.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×