Public Cloud Spending on the Rise in 2017

By: Joe Hewitson| - Leave a comment

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Public cloud spending pumped the brakes a bit in 2016, but 2017 looks to reverse those fortunes. IDC’s latest Worldwide Quarterly Cloud IT Infrastructure Tracker forecasts a rosy future for cloud spending that includes the possibility of double-digit growth. The report outlines specific areas of growth for both public and private cloud investments.

While both types of cloud deployment are expected to receive plenty of attention in the coming months, public cloud in particular appears set to grow the most. Of the $41.7 billion to be spent on cloud environments this year — with a 15.3 percent year-over-year increase, no less — 60.5 percent is predicted to be spent on public cloud data centers. In contrast, 14.9 percent will be funneled to off-site private cloud infrastructure.

And not to be ignored, in-house private cloud deployments are predicted to account for 62.3 percent of all private cloud IT dollars. With a forecast growth of 13.1 percent year over year, private cloud investments lag only slightly behind their public counterparts.

Driving Forces Behind the Public Cloud

Cloud IT growth over the next several months will be driven by three main segments. Ethernet switches take the driver’s seat, with an impressive 21.8 percent growth year over year. Processing power comes in second, with the server segment expected to grow 17.9 percent. Enterprise storage brings up the rear at 10.7 percent.

All that growth has to come at the expense of something, though. In this case, any IT investments not under the cloud umbrella are in for a slow 2017. The IDC report predicts a 5.3 percent slide in traditional IT spending this year. However, it’s worth noting that despite giving up ground to cloud IT deployments, these traditional infrastructure elements still bring in 57.9 percent of end-user spending.

IDC also took a long-term look at cloud growth and expects off-site cloud investments to maintain a five-year compound annual growth rate of 11.7 percent. That figure translates to $47.2 billion over the forecast period. And unsurprisingly, the public cloud segment will account for the majority of these investments.

Numbers aside, IDC’s report reveals an important trend in modern IT: Cloud infrastructure is on pace to become the new norm — and sooner than you might think, thanks to unparalleled innovation. With a compound annual growth rate of 11.4 percent, public and private cloud spending could eclipse noncloud infrastructure by 2020.

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About The Author

Joe Hewitson

News Writer

With a degree in Applied Computing Technology and over a decade of service in the IT and Software Development industries, Joe Hewitson has acquired a keen ability to write about emerging technologies and the impact they have on businesses in many different industries. Accompanying his love for all things tech is a passion for writing informed and engaging pieces in a unique and easy to understand voice. Living in the beautiful arms of the Rocky Mountains, Joe is an avid outdoorsman and enjoys running, biking, and fishing.