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Global cloud IT infrastructure spend grew to US$7.6 billion in Q3: IDC

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Revenue from cloud IT infrastructure products increased by 23 per cent year over year to US$7.6 billion in the third quarter of 2015, with spends highest in the public sector and regionally in Japan and Asia-Pacific, according to a report released by International Data Corporation (IDC).

The IDC report, ‘Worldwide Quarterly Cloud IT Infrastructure Tracker’, defines three technology segments as infrastructure: server, storage and Ethernet switch.

Public cloud sales increased by 25.9 per cent to US$4.6 billion, while private cloud sales rose by 18.8 per cent to US$2.9 billion in the third quarter of 2015. All three technology segments showed strong growth in both private and public cloud, with server experiencing the highest growth in private cloud at 24.3 per cent and Ethernet switch experiencing the highest growth in public cloud at 37.8 per cent. Public cloud spending on storage also grew 26.7 per cent year over year.

The overall share of cloud IT infrastructure sales grew to 33.8 per cent in the third quarter, up from 28.7 per cent a year earlier. By contrast, revenue in traditional IT infrastructure decreased by -3.2 per cent year over year in the third quarter, with declines posted in all three technology segments.

At the regional level, revenue grew fastest in Japan at 47.1 per cent year over year, Asia-Pacific at 35.3 per cent, Western Europe at 22.1 per cent, Canada at 22 per cent and the US at 20.1 per cent. Revenue in Central and Eastern Europe declined by 10.2 per cent year over year.

At the individual vendor level, the top performers were HP, Dell, Cisco and EMC.

“Customers are modernising their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises,” said Kuba Stolarski, research director, computing hardware and platforms, IDC.

“These customers depend on a mix of as-a-service offerings and traditional infrastructure to help meet the IT transformation requirements of their organisations. As public cloud offerings continue to evolve and improve in reliability and security, customers are becoming more comfortable with the flexibility that they get by deploying certain workloads in these elastic environments.”

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