Spending on compute and storage infrastructure products for cloud deployments, including dedicated and shared IT environments, increased 24.7% year-on-year in the third quarter of 2022 (3Q22) to $23.9 billion, according to figures from IDC. Non-cloud spending was also up – by 16.5% to $16.8 billion.
► Shared (or public) cloud expected to pass non-cloud spend this year
► 45% of dedicated cloud infrastructure deployed on-premises
The analyst said that as well as high demand, backlogs played a part in boosting growth as the supply chain shortages started to ease.
Spending on shared cloud infrastructure reached $16.8 billion in the quarter, increasing 24.4% compared to a year ago and putting this segment equal with non-cloud spending and the former is expected to overtake the latter this year.
The dedicated cloud infrastructure segment grew 25.3% in 3Q22 to $7.1 billion. Interestingly, of the total dedicated cloud infrastructure, 45.2% was deployed on customer premises.
For the full year 2022, IDC is forecasting cloud infrastructure spending to be up 19.6% to $88.1 billion – a noticeable increase from 8.6% annual growth in 2021. Non-cloud infrastructure is expected to be up 10.7% to $64.7 billion. Shared cloud infrastructure will also be up almost a fifth , growing 19.0% to $60.9 billion for the full year while spending on dedicated cloud infrastructure is expected to grow 21.2% to $27.3 billion for the whole of 2022.
IDC also noted that in Q3 last year, service providers spent $23.9 billion on compute and storage infrastructure, up 22.5% from the prior year. This accounted for 58.7% of the total market. Non-service providers (e.g., enterprises, government, etc.) increased their spending at almost the same rate – 19.3%. IDC expects compute and storage spending by service providers to be $87.8 billion for the full year – up 17.5% year-on-year.
Long term, IDC predicts spending on cloud infrastructure to have a compound annual growth rate (CAGR) of 12.9% over the 2021-2026 forecast period, reaching $135.1 billion in 2026 and accounting for 67.3% of total compute and storage infrastructure spend. Shared cloud infrastructure will account for 72.3% of the total cloud amount, growing at a 13.8% CAGR. Spending on dedicated cloud infrastructure will grow at a CAGR of 10.7% to $37.4 billion. Spending on non-cloud infrastructure will have a CAGR of 2.3%, reaching $65.6 billion in 2026. Spending by service providers on compute and storage infrastructure is expected to grow at a CAGR of 12.1%, reaching $131.9 billion in 2026.
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