According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, total spending on IT infrastructure products (server, enterprise storage, and Ethernet switches) for deployment in cloud environments will increase 12.4% year over year in 2017 to $40.1 billion.
Public cloud datacenters will account for the majority of this spending (60.7%) and will grow at the fastest rate year over year (13.8%). Off-premises private cloud environments will represent 14.9% of overall spending and will grow 11.9% year over year.
On-premises private clouds will account for 62.2% of spending on private cloud IT infrastructure and will grow 9.6% year over year in 2017.
Increased spending on cloud IT infrastructure and decreasing investments in non-cloud IT infrastructure will be a common theme for all regions.
Worldwide spending on traditional, non-cloud, IT infrastructure will decline 4.6% in 2017 accounting for 58.7% of the overall end-user spending on IT infrastructure products across the three segments, down from 62.6% in 2016.
In cloud IT environments, Ethernet switches will be the fastest growing technology segment with 25.8% year-over-year growth in 2017, while spending on servers and enterprise storage will grow 9.1% and 12.0%, respectively.
These growth rates include double counting between server and storage to fully represent each of the technology segments. In all three technology segments, spending on IT infrastructure deployed off-premises will grow in 2017 while spending on on-premises environments will decline.
Over the five-year forecast, IDC expects spending on off-premises cloud IT infrastructure will have a compound annual growth rate (CAGR) of 11.0%, reaching $45.7 billion in 2021.
Public cloud datacenters will account for 79.8% of this amount with an 11.0% CAGR, while spending on off-premises private cloud infrastructure will increase at an 11.3% CAGR. Combined with on-premises private cloud, overall spending on cloud IT infrastructure will have a five-year CAGR of 10.9% and by 2020 will surpass spending on non-cloud IT infrastructure. Spending on on-premises private cloud IT infrastructure will grow at a 10.5% CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 3.1% CAGR during the same period.