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EMEA cloud IT infrastructure revenue grows by 20% in Q1

According to the latest figures from the International Data Corporation (IDC), EMEA cloud infrastructure revenue grew by almost 20 per cent during the first quarter of 2016.

The WW Quarterly Cloud Infrastructure Tracker found that during Q1 2016, IT infrastructure spending on servers, disk storage and Ethernet switches for public and private cloud in the EMEA region grew by 17.6 per cent year over year to $1.3 billion. To gather data for its quarterly figures, IDC tracks large companies such as Cisco, Dell, EMC Fujitsu, Hitachi, HP, IBM, Lenovo and Oracle along with Major ODM vendors and even some smaller companies operating in the sector.

Kamil Gregor - research analyst, European Infrastructure Group, IDC - shared the company's forecasts on the growing cloud infrastructure market, saying: “IDC expects this market to reach a value of $10.7 billion by 2020, or 46.4 per cent of total market expenditure, making it one of the strongest growth areas for the European infrastructure sector, compared with the expectation of a stagnant, if not declining, traditional market."

IDC, along with other companies in the sector, did not predict a Brexit vote and Gregor made it clear that its forecasts do not include how the UK leaving the EU could affect business going forward: “Our forecast for the UK may be adjusted downward in the following quarter as IDC expects a 'challenging transition' if the UK activates the process of EU withdrawal. Other EMEA markets are expected to remain largely unaffected.”

On a global scale, vendor revenue from Cloud IT infrastructure grew by 3.9 per cent year over year to $6.6 billion for Q1 2016.

The research director for Computing Platforms at IDC, Kuba Stolarski, said: “A slowdown in hyperscale public cloud infrastructure deployment demand negatively impacted growth in both public cloud and cloud IT overall. Private cloud deployment growth also slowed, as 2016 began with difficult comparisons to 1Q15, when server and storage refresh drove a high level of spend and high growth. As the system refresh has mostly ended, this will continue to push private cloud and, more generally, enterprise IT growth downwards in the near term. Hyperscale demand should return to higher deployment levels later this year, bolstered by service providers who have announced new datacenter builds expected to go online this year”

Hewlett Packard Enterprise (HPE) was able to maintain its lead in the sector with 17.2 per cent share of the cloud infrastructure market with Cisco and Dell closing in on one another with an 11.9 per cent and 11.8 per cent share respectively.

Image Credit: Everything Possible / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.