Cloud spending now accounts for a third of all IT infrastructure spending, according to the latest research from analyst firm IDC, which lumps together data for server, storage, and Ethernet switch figures.
Overall, spending on cloud IT infrastructure will grow by 26.4 percent to reach $33.4 billion. In comparison, IDC reports spending on non-cloud IT infrastructure will remain flat at $67 billion.
According to IDC, infrastructure spending for public cloud shows the most impressive trajectory, with the potential to expand by 32.2 percent in 2015 to the range of $21.7 billion. Private cloud is roughly half that, with spend expected to grow 16.8 percent year-over-year to $11.7 billion.
In most regions, growth in public cloud IT infrastructure spending will trump spending on private cloud IT infrastructure, as public cloud service providers push out better service offerings and invest in datacenter expansion.
In fact, IDC recently released sales figures for the same cloud IT infrastructure market, and the numbers are fairly in line with today's report. IDC reports the entire cloud IT infrastructure market grew by 25.1 percent during the first quarter of 2015, with sales worth $6.27 billion.
For the five-year forecast period, IDC expects that cloud IT infrastructure spending will grow at a compound annual growth rate (CAGR) of 15.6% and will reach $54.6 billion by 2019 accounting for 46.5% of the total spending on IT infrastructure.
In 2019, IDC expects cloud service providers will spend $35.3 billion on IT infrastructure for delivering public cloud services, while spending on private cloud IT infrastructure will reach $19.2 billion.
"End users continue to evaluate various approaches to adopting cloud-based IT - some integrate public cloud service into their IT strategies, others choose to build their own private clouds or use third-party private cloud offerings, and some, seeing benefits in both, implement hybrid cloud strategies," reports Natalya Yezhkova, Research Director, IDC Storage Systems. "The breadth and width of cloud offerings only continue to grow, with an increasing universe of business- and consumer-oriented solutions being born in the cloud and/or served better by the cloud. This growing demand from the end user side and expansion of cloud-based offerings from service providers will continue to fuel growth in spending on the underlying IT infrastructure in the foreseeable future."
The benefits of cloud computing are important to understand whether you own a small business, run the IT department in a growing enterprise or are in charge of making resource management decisions for a company of any size. Cloud computing can help businesses and organizations of all sizes and types to streamline operations, cut costs, achieve greater collaboration and simply do more with enterprise resources - especially today's 24/7 mobile workforce.