Cloud Computing Infrastructure: Cloud Infrastructure Spending Slows Slightly but Expected to Pick up in Second Half – Formtek Blog (blog)

August 20, 2016 Facebook Twitter LinkedIn Google+ Uncategorized

By Dick Weisinger

Despite hype around cloud computing, even cloud computing spending seems to have leveled off for a bit in the first quarter, growing only a modest 3.9 percent annual rate in the first quarter, according to IDC.  But IDC predicts that rapid growth of buying infrastructure product to build out and replenish data centers will take over again in the second half of the year.  Some of the current leveling of growth has been due to reduced demand from cloud service provider (CSP) for IT infrastructure products like servers, storage and Ethernet switches.

Cloud computing infrastructure growth still is pretty healthy long-term though. By the end of 2016, according to IDC, spending worldwide on cloud IT infrastructure products is expected to hit $37.1 billion, a jump of 15.5 percent over 2015.  Global public cloud IT infrastructure is on track to increase by 18.8 percent this year.

Kuba Stolarski, IDC computing platforms research director, said that “with geopolitical wildcards such as Brexit, end customers’ decisions about where and how to deploy IT resources may be impacted.  If new data sovereignty concerns arise, service providers will experience added pressure to increase local data center presence, or face potential loss of certain customers’ workloads…  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.”