According to a newly released report from IDC, the share of cloud IT infrastructure sales in the third quarter of 2016 has climbed to 39.2% of all IT infrastructure spending, up from 34.7% a year ago.
According to IDC:
- Revenue from private cloud infrastructure sales grew 8.2% to $3.3 billion, and public cloud 8.0% to $5.1 billion.
- In contrast, on-premises IT infrastructure decreased 10.8% in the same period.
- In the on-premises segment, server declined 12.9%, with Ethernet switch and storage declining 1.6% and 8.6%.
- Private cloud infrastructure growth was led by Ethernet switch at 60.8% year-over-year growth, then storage (9.0%) and server (3.2%).
- When it comes to public cloud growth, networking, again with Ethernet switch, witnessed the largest growth, growing 46.2%. And both server and storage growth in public cloud were relatively weak.
In the year ahead, IDC sees the biggest loser (and I don’t see any reason to think otherwise) as on-premises non-cloud infrastructure.
IDC predicts that total spending on IT infrastructure for cloud in 2017 will grow 18.2%, increasing in dollar amount to $44.2 billion. Of this amount, the majority (61.2%) will be in public cloud data centers, while off-premises, private cloud environments will contribute 14.6% of spending.
With the increased adoption of private and hybrid cloud strategies, spending on IT infrastructure for on-premises private cloud deployments is expected to grow at 16.6%.
Interestingly, IDC expects spending for worldwide security-related hardware, software and services to grow 8.3% — almost exactly the same growth rate as both public and private cloud infrastructure. Total worldwide revenues for security-related hardware, software and services are anticipated to grow from $73.7 billion in 2016 to $101.6 billion in 2020.
According to IDC, four industries will account for 37% of worldwide security spend: Banking, discrete manufacturing, federal/central government and process manufacturing will be the biggest investors in this space for the five-year period. Healthcare, telecommunications, utilities, state/local government and securities and investment services are expected to grow 9% annually over the next five years.
By far, the largest investments will be in security-related services, IDC predicts.
The investment in cloud platforms will not only increase cloud security investments — companies have to secure the infrastructure after all — but we should also be seeing tremendous investment in securing the new processes such as DevOps, Continuous Integration and Continuous Deployment that enterprises put in place for cloud deployments.