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Cloud infrastructure spend hit $66.8B last year

Cloud infrastructure spend hit $66.8B last year

The fourth quarter saw cloud IT infrastructure account for 49.7 per cent of all IT infrastructure

Credit: Leyn

Worldwide spending on cloud IT infrastructure grew in the fourth quarter of 2019 and the year overall, recording 12.4 per cent year-over-year for the quarter and 2.1 per cent year-over-year for 2019.

This growth represents spending of US$19.4 billion for the quarter and US$66.8 billion for 2019, according to IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker

During the quarter, public cloud led the way with growth of 14.5 per cent year-over-year to US$13.3 billion, while private cloud grew 8.2 per cent year-over-year to US$6.1 billion. 

For the year however, public cloud growth came in at just 0.1 per cent year-over-year to US$45.2 billion and private cloud growth rose by 6.6 per cent to US$21.6 billion. 

Meanwhile, overall IT infrastructure spend saw growth of 3.3 per cent year-over-year to US$38.1 billion for the quarter, yet declined 1.1 per cent year-over-year to US$134.4 billion for the full year. Non-cloud IT infrastructure spending declined 4.6 per cent year-over-year to US$18.7 billion for the quarter and 4.1 per cent year-over-year to US$67.7 billion for the year.

Additionally, the fourth quarter saw cloud IT infrastructure account for 49.7 per cent of all IT infrastructure, with IDC analysis forecasting this figure to surpass the 50 per cent mark both quarterly and annually in future reports.

The analysis also predicted that cloud infrastructure spend will reach 60.5 per cent annually in 2024.

Within the three markets that make up IT infrastructure, storage platforms saw the most growth for the quarter at 15.1 per cent year-over-year, reaching US$6.6 billion. This was followed by compute platforms at 14.5 per cent year-over-year and US$10.8 billion in spending, while Ethernet switches recorded a decline of 3.9 per cent year-over-year to US$2 billion.

However, Ethernet switches recorded the most growth for 2019 overall, at 5 per cent year-over-year to US$8.2 billion. The storage platforms segment was next, with 1.9 per cent year-over-year growth to US$23.1 billion, and then compute platforms with 1.5 per cent year-over-year growth to US$35.5 billion.

In terms of cloud IT infrastructure vendor revenue performance, Dell Technologies stood out on top with quarterly revenues of US$2.7 billion and market share of 14.5 per cent.

HPE and New H3C Group were next, with US$2.1 billion and 11.6 per cent market share, then Cisco at US$1.1 billion and 5.9 per cent market share, closely followed by Inspur and Inspur Power Systems at US$1.09 billion and also 5.9 per cent market share. Huawei was next with US$873 million and 4.7 per cent market share and then Lenovo with US$810 million and 4.4 per cent market share.

Meanwhile original design manufacturer direct spending accounted for US$6.3 billion in revenue and 34 per cent market share.


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Tags IDCLenovoHuaweiInspurHPEDell TechnologiesNew H3C GroupInspur Power Systems

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