Public cloud spend slowdown will be short, IDC says

In case you weren't acquainted with IDC's latest Worldwide Quarterly Cloud IT Infrastructure Tracker report, it says that there has been a slight downturn in the demand for storage and Ethernet switches for use in public cloud environments, in Q1 2016.

But, unlike the PC market which has been steadily declining over a prolongued period of time, IDC says that this downturn will be short-lived, and it's only a matter of time before it gets back into normal.

According to IDC, cloud IT infrastructure spend will hit $37.1bn (£28.8bn) this year, representing a 15.5 per cent increase, year-on-year. Strong investment growth in the public cloud market is the primary driver of this growth.

Of that figure, public cloud IT infrastructure is expected to jump 18.8 per cent, to $23.3bn (£18bn), while private ones will see a 10.3 per cent year-on-year rise, to $13.8bn (£10.7bn).

“We will continue to see steady growth in demand for public cloud services and, as a result, underlying spending on IT infrastructure by cloud service providers,“ said IDC storage systems research director Natalya Yezhkova.

“The economic and financial volatility we see in some regions will push demand further as increasing sophistication of public cloud offerings allows organisations to fulfil their needs across a growing variety of IT domains, while operational expenditure-oriented pricing models provide some relief to tightening IT budgets.”

However, IDC warns that different political and geological factors must be taken into account.

“With geopolitical wildcards such as Brexit looming, end customers’ decisions about where and how to deploy IT resources may be impacted,” said IDC computing platforms research director Kuba Stolarski.

“If new data sovereignty concerns arise, service providers will experience added pressure to increase local datacentre presence, or face potential loss of certain customers’ workloads.”

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