Cloud Infrastructure Spending Grows, Will Reach $32B in 2015

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This article originally appeared at The WHIR

Cloud infrastructure spending will account for 33 percent of all IT infrastructure spending in 2015 according to the Worldwide Quarterly Cloud IT Infrastructure Tracker released on Tuesday by IDC. This growth represents an increase of 21 percent over 2014.

Peer 1 research released earlier this month shows hybrid cloud tripling over the next three years which may help contribute to new spending on cloud infrastructure as on premise hosting declines and businesses seek new cloud based solutions. However, although Peer 1 reported on premise hosting in decline, the IDC research still shows that private cloud spending is rising. In 2014 private cloud spending was up just over 20 percent compared to 2013.

The cloud market is growing six times faster than the overall IT market, according to a forecast released in November by IDC. By 2018, public cloud services spending is expected to reach more than $127 billion, a growth rate of 22.8 percent over the $56.6 billion in spending this year.

This latest IDC report covers 8 geographical regions and found that Western Europe will have the highest IT infrastructure growth with 32 percent. This is good news for the EU; ENISA says government cloud adoption is critical for economy and spending on infrastructure may help accelerate the process of cloud adoption. Latin America was in second with 23 percent, closely followed by Japan at 22 and the US at 21.

Researchers expect cloud infrastructure spending to continue over the next five years with an annual growth rate of about 14 percent. “The pace of adoption of cloud-based platforms will not abate for quite some time, resulting in cloud IT infrastructure expansion continuing to outpace the growth of the overall IT infrastructure market for the foreseeable future,” said Kuba Stolarski, Research Manager, Server, Virtualization and Workload Research at IDC. “As the market evolves into deploying 3rd Platform solutions and developing next-gen software, organizations of all types and sizes will discover that traditional approaches to IT management will increasingly fall short of the simplicity, flexibility, and extensibility requirements that form the core of cloud solutions.”

Continued infrastructure spending bodes well for all cloud service providers. As infrastructure improves, especially in geographical regions such as China and Indiawhere there is huge opportunity for growth, providers can expand into new regions creating opportunities for new revenue streams.

This first ran at http://www.thewhir.com/web-hosting-news/cloud-infrastructure-spending-grows-will-reach-32-billion-2015