The growing need for cloud solutions, fueled by the widespread transition to remote working, has forced cloud service providers and other organisations to increase spend on both hardware and software components to keep up with the demand.
This is according to a new report from LearnBonds, which claims the global cloud IT infrastructure spend will reach $69.2 billion this year, representing 3.6 percent year-on-year growth.
“As enterprise IT budgets tighten through the year, the public cloud will see an increase in demand for services," said Kuba Stolarski, Research Director of Infrastructure Systems, Platforms, and Technologies at IDC.
According to Stolarski, the increase comes as a result of two key factors: the sudden surge in remote working and companies migrating workloads to the public cloud in a bid to save costs.
“Once the coast is clear of the coronavirus, we expect some of this new cloud service demand to remain sticky going forward,” he added.
As a result, vendor revenue is also up, with the sector pulling in a $63.97 billion profit last year - an increase of 30 percent in three years. ODM Direct led the pack with 32 percent of the market, while Dell held 16 percent and HPE 11.7 percent.
IDC also believes IT infrastructure spend will hit $100 billion by 2024, with a compound annual growth rate of 8.4 percent.