Dive Brief:
- A new report from the International Data Corporation predicts that infrastructure spending for cloud environments will reach $38.2 billion in 2016.
- Private cloud infrastructure spending will grow more than 11% to $13.9 billion in 2016, IDC said, with public cloud growing approximately 14% to $24.4 billion.
- While spending will increase in the cloud, IDC said, enterprise spending on traditional data centers will decline 4%.
Dive Insight:
Global cloud infrastructure spending on server, storage and networking is expected to grow almost 19% in 2016. Even though spending on traditional data centers will fall, they will still account for almost 64% of total spending, IDC said.
Looking ahead, IDC estimates cloud infrastructure spending will grow 12.5% per year over the next five years, reaching $57.8 billion in 2020. Of the projected spending in 2020, public cloud providers will spend $37.5 billion on infrastructure and private cloud spending will hit $20.3 billion. Meanwhile, spending on non-cloud infrastructure will drop just 1.3% per year.
Among vendors in 2015, Hewlett Packard Enterprise was the leading cloud IT infrastructure vendor, with 15.7% of the market. Dell was second with 10.6% of the market, followed by EMC at 7.6%. With the merger between Dell and EMC set to close this year, the companies are poised to take the top spot away from HPE.
While the popularity of cloud computing among enterprises continues to grow, the cloud can also present challenges. According the 2016 State of the Cloud report from RightScale, a lack of resources and expertise is now the top enterprise cloud challenge.
