Cloud Computing: In 2022, investment in traditional IT equipment for data centers will finally be surpassed by spending on shared cloud IT infrastructure.
With business customers spending $18.3 billion on cloud computing and storage infrastructure in the first quarter of 2022, up 17.2 percent year over year, spending on cloud services is likely to reach another critical tipping point.
The sum includes both dedicated and pooled infrastructure budgets. Spending on shared cloud infrastructure, which accounted for $12.5 billion (68 percent) of the total, was a significant growth driver.
A tech researcher named IDC reported that subcategories had grown by 15.7% from Q1 2021.
IDC anticipates shared cloud infrastructure spending to surpass non-cloud spending for the first time in 2022 due to rising demand for shared cloud spending in particular.
IDC has been keeping an eye on how much money is being spent on traditional data center computation, storage, and IT infrastructure in public clouds from companies like Amazon Web ServicesAWS, Microsoft Azure, Google Cloud, and other providers like Digital Ocean are examples.
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The forecast for non-cloud IT infrastructure suppliers is still excellent, albeit not as promising as it is for cloud service providers.
This quarter, spending on non-cloud infrastructure climbed by $14.8 billion, or 9.8%, from the same period last year. It was the fifth quarter in a row that growth occurred.
IDC doesn’t provide a picture of the revenue distribution among public cloud providers, but analyst Canalys recently stated that AWS garnered 33% of the $53.5 billion in worldwide cloud infrastructure spending in Q4 2021, followed by Azure with 22% and Google Cloud with 9%. The remaining 36% was taken by other providers.
Spending on cloud infrastructure has surged since the outbreak began in March 2020 as companies hastened their digital upgrades.
With the exception of a 1.9 percent year-over-year dip in Q2 2021, spending has increased for seven straight quarters starting in Q3 2019.
The second quarter of 2020 saw the most year-over-year growth, at 38.4%. Spending on cloud infrastructure in Q4 2021 increased by 13.5 percent year over year to $21.1 billion.
The market for non-cloud spending is still very large and is predicted to increase during the entire year, albeit much more slowly than cloud spending.
According to IDC, the total amount spent on cloud infrastructure would rise by 22 percent to $90.2 billion in 2022. It says that since 2018, this year has seen the highest annual growth rate. It is anticipated that spending on conventional IT infrastructure will increase by 1.8 percent to $60.7 billion.
Only a portion of the increase in spending may be attributed to the increased use of infrastructure offered by the cloud.
Additional important causes are inflation and the world’s congested logistical networks’ sluggish but continuous development.
IDC anticipates that investment in cloud infrastructure will increase annually in the Asia Pacific/Japan, China, US, and Western Europe regions by 20 to 25 percent.
Speeding is anticipated to drop by 54% across Central and Eastern Europe in 2022 as a result of Russia’s invasion of Ukraine.
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Between 2021 and 2026, the analyst anticipates that spending on computing and storage cloud infrastructure would expand at a compound annual growth rate (CAGR) of 14.5 percent.
It projects that spending will amount to $145.2 billion in 2026, making up 69.7% of all expenditures on compute and storage infrastructure.
Spending on non-cloud infrastructure is anticipated to increase at a CAGR of 1.2 percent and reach $63.1 billion in 2026.
IDC also examines the spending of managed service providers, cloud service providers, and digital service providers, which together make up 55.3% of IT infrastructure spending.
In Q1 2022, this group invested $18.3 billion, or 14.5 percent more than the previous quarter, in computer and storage infrastructure.
In Q1 2022, non-service providers’ spending increased 12.9 percent year over year, the largest growth in 14 quarters.
Service providers will spend $89.1 billion on IT infrastructure in 2022, up 18.7 percent over the previous year.
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Between 2021 and 2026, the analyst anticipates that spending on computing and storage cloud infrastructure would expand at a compound annual growth rate (CAGR) of 14.5 percent.
It projects that spending will amount to $145.2 billion in 2026, making up 69.7% of all expenditures on compute and storage infrastructure.
Spending on non-cloud infrastructure is anticipated to increase at a CAGR of 1.2 percent and reach $63.1 billion in 2026.
IDC also examines the spending of managed service providers, cloud service providers, and digital service providers, which together make up 55.3% of IT infrastructure spending.
In Q1 2022, this group invested $18.3 billion, or 14.5 percent more than the previous quarter, in computer and storage infrastructure.
In Q1 2022, non-service providers’ spending increased 12.9 percent year over year, the largest growth in 14 quarters.
Service providers will spend $89.1 billion on IT infrastructure in 2022, up 18.7 percent over the previous year.
