IT infrastructure spending shifting toward cloud deployments

Traditional IT infrastructure spending is losing steam as private and public cloud build-outs accelerate, according to IDC.
Written by Larry Dignan, Contributor

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Spending on information technology infrastructure such as servers, storage, and networking went to cloud deployments, according to IDC.

The research firm said that IT infrastructure spending in 2017 devoted to cloud will total $46.5 billion, up 20.9 percent from 2016. Spending on non-cloud IT infrastructure fell 2.6 percent in 2017, but it still accounts for 57.2 percent of total spending.

Read also: What is cloud computing? Everything you need to know about the cloud, explained

Nevertheless, it's clear that IT infrastructure spending is going to the cloud. Consider:

  • 57.2 percent of spending on IT infrastructure went to traditional use cases, but that's down from 62.4 percent in 2016.
  • Public cloud data centers account for the majority (65.3 percent) of IT infrastructure spending devoted to cloud deployments.
  • The growth rate for public cloud IT infrastructure spending is 26.2 percent for 2017.
  • Off-premises private cloud spending represent 13 percent of IT infrastructure spending. On-premises private cloud spending is 62.6 percent of spending on IT infrastructure devoted to private cloud.

In cloud IT environments, networking and compute spending each grew 22 percent in 2017, with storage growing at a 19.2-percent clip.

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