Global cloud revenue reaches $11 billion in Q3 2017

Global cloud revenue reaches $11 billion in Q3 2017 [Image: Kalawin via iStock]

Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT – including public and private cloud – grew by 25.5 per cent year on year in the third quarter (Q3) of 2017, reaching $11.3 billion (£8.2 billion).

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

In Q3, public cloud infrastructure revenue saw a year-on-year increase of 32.3 per cent, reaching $7.7 billion. IDC said it now represents 30.2 per cent of total worldwide IT infrastructure spending, which is up from 26.3 per cent a year ago. The company also found that private cloud revenue reached $3.6 billion, registering an annual increase of 13.1 per cent.

According to IDC, the total global cloud IT infrastructure revenue generated in 2017 is “on pace” to nearly double the figure recorded in 2013.

Meanwhile, traditional (non-cloud) IT infrastructure revenue grew eight per cent from a year ago, despite generally declining over the past several years. IDC said that although there had been a fall in revenue, traditional IT still represents 55.6 per cent of total worldwide IT infrastructure spending, reaching $14.2 billion in Q3 last year.

Kuba Stolarski, research director for Computing Platforms at IDC, said: “2017 has been a strong year for public cloud IT infrastructure growth, accelerating throughout the year.

“While hyperscalers such as Amazon and Google are driving the lion's share of the growth, IDC is seeing strong growth in the lower tiers of public cloud and continued growth in private cloud on a worldwide scale. In the near term, new Intel and AMD platforms released during 2017 should aid in refresh and infrastructure expansion throughout the cloud IT infrastructure segment.”