Cloud computing driving spending on IT infrastructure

Cloud computing driving spending on IT infrastructure

Increased spending on cloud computing is the main driver behind the rise in IT infrastructure spending across Europe, the Middle East and Africa (EMEA), according to research firm IDC.

Spending on infrastructure for private and public cloud services increased by 27 per cent in the fourth quarter of 2014 to $1.1 billion (£720 million), rising by 28 per cent year-on-year to reach $4.1 billion for the whole of 2014.

Cloud systems also accounted for 17 per cent of overall IT infrastructure, a three per cent rise from the year before.

When it comes to storage capacity, the cloud accounted for 32 per cent, a rise of 52 per cent compared to the previous year.

The strongest market was in Western Europe, with director of IDC's European Cloud Practice, Giorgio Nebuloni, stating:

"The Western European market for cloud hardware was the fastest growing among the major regions at the end of 2014, and we believe it is still far from maturity.

"Though in public cloud environments the region is lagging the US and China, where the largest Web players have their roots, in 2014 it went through a phase of considerable data centre investments. US multinationals like Amazon Web Services, Facebook, Google, Microsoft, and Salesforce expanded their presence to serve customers with regionally located data centres, and native service providers fought back with investments of their own."

As a result of the stronger results, IDC has stated that it expects the EMEA market for cloud infrastructure to reach $10.8 billion by 2019.

It all amounts to a greater number of companies placing an increased emphasis on the use of cloud systems, meaning it is now crucial that businesses sit up and take note.