Business cloud deployment spending set to grow by 10.9% in 2018

Business cloud deployment spending is set to grow by 10.9% in 2018 [Image: MF3d via iStock]

Total spending on IT infrastructure products (server, enterprise storage, and Ethernet switches) for deployment in cloud environments is expected to reach $52.3 billion (£42.3 billion) in 2018, with year-on-year growth of 10.9 per cent.

This is according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker.

Public cloud data centres are expected to account for 65.9 per cent of this spending, growing at the fastest annual rate of 11.3 per cent. Off-premises private cloud environments will represent 13 per cent of cloud IT infrastructure spending, growing at 12 per cent year on year.

Meanwhile, on-premises private clouds are forecast to account for 61.7 per cent of spending on private cloud IT infrastructure, growing by 9.1 per cent year on year in 2018.

IDC also predicted that in cloud IT environments, spending in all technology segments – except for storage platforms – will grow at double-digit rates in 2018. Ethernet switches and compute platforms will see the fastest growth, at 20.9 per cent and 12.4 per cent respectively. In addition, storage platforms are expected to grow by six per cent.

According to the tracker, investment in all three technologies will increase across all cloud deployment models – public cloud, private cloud off-premises and private cloud on-premises.

IDC enterprise storage research director Natalya Yezhkova said: “Growing expansion of digital transformation initiatives enables further adoption of cloud-based solutions around the globe. This will result in a continuous shift in the profile of IT infrastructure buyers.”

She added that Software-as-a-Service, Platform-as-a-Service, and Infrastructure-as-a-Service offerings “address a broad range of business and IT needs of enterprises from 'lift-and-shift' to emerging workloads”.

As a result, Ms Yezkhova said, service providers' demand for IT infrastructure for delivering these offerings is growing steadily.