Cloud computing grabbing greater share of IT budgets

Organizations direct more infrastructure spending to off-premises deployments, IDC report says.

Total spending on IT infrastructure products, including servers, enterprise storage systems and Ethernet switches, for deployment in cloud environments will increase 12 percent year over year in 2017 to $40.1 billion, according to a report from International Data Corp.

Public cloud data centers will account for the majority of this spending (61 percent) and will grow at the fastest rate year over year (14 percent). Off-premises private cloud environments will represent 15 percent of overall spending and will grow 12 percent year over year, IDC predicts.

Also See: Cloud computing market predicted to reach $41.7B

On-premises private clouds will account for 62 percent of spending on private cloud IT infrastructure and will grow 10 percent year over year in 2017, the research firm estimates.

Increased spending on cloud IT technology and decreasing investments in non-cloud IT infrastructure will be a common theme for all regions, IDC said. Worldwide spending on traditional, non-cloud IT infrastructure will decline 5 percent in 2017, accounting for 59 percent of overall end-user spending on IT infrastructure products across the three segments, down from 63 percent in 2016.

"The overall profile of spending on IT infrastructure in various deployment/location scenarios seen in 2016 will continue in 2017, with some differences in specific technology segments," said Natalya Yezhkova, research director of enterprise storage at IDC.

"Enterprise adoption of hybrid and multi-cloud IT strategies and the proliferation of cloud-native applications and areas such as the Internet of Things (IoT), which embrace a cloud-first approach to supporting IT resources, will fuel further increases in end-user spending on services-based IT,” Yezhkova adds.

“In turn, this move will be reflected in a shift of the overall spending on IT infrastructure from on-premises to off-premises deployments and from traditional IT to cloud IT," she concludes.

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