Wednesday , September 28 2022
Shared Cloud Infrastructure Spending to Rise by 25.5% to $64.5 Billion in 2022

Shared Cloud Infrastructure Spending to Rise by 25.5% to $64.5 Billion in 2022

In 2022, shared cloud infrastructure spending is expected to grow 25.5 per cent (year-on-year) to total $64.5 billion while spending on dedicated cloud infrastructure is expected to grow 13.1 per cent to reach $25.4 billion in 2022.

This is according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment report.

In 2021, the cloud infrastructure spending reached $73.9 billion, up 8.8 per cent over 2020. In Q4 2021, it increased 13.5 per cent (year over year) to reach $21.1 billion.

Spending on compute and storage infrastructure products for cloud infrastructure, including dedicated and shared environments, increased 13.5% year over year in the fourth quarter of 2021 (4Q21) to $21.1 billion.

This marked the second consecutive quarter of year-over-year growth as supply chain constraints have depleted vendor inventories over the past several quarters.

The IDC report further revealed that global cloud infrastructure spending is set to reach $90 billion in 2022, a 21.7 per cent growth compared to 2021, while non-cloud infrastructure is expected to decline slightly, down 0.3 per cent to $59.4 billion.

“As backlogs continue to grow, pent-up demand bodes well for future growth as long as the economy stays healthy, and supply catches up to demand,” said the IDC.

Spending on shared cloud infrastructure reached $14.4 billion in the fourth quarter of 2021, increasing 13.9 per cent compared to a year ago, and grew to $51.4 billion for 2021, an increase of 7.5 per cent.

IDC expects to see continuously strong demand for shared cloud infrastructure with spending expected to surpass non-cloud infrastructure spending in 2022.

The IDC report revealed that the full year 2021, cloud infrastructure spending totalled $73.9 billion, up 8.8% over 2020.

Investments in non-cloud infrastructure increased 1.5% year over year in Q421 to $17.2 billion, marking the fourth consecutive quarter of growth noted the report.

For the full year, non-cloud infrastructure spending increased 4.2% over 2020, reaching a total of $59.6 billion.

Spending on shared cloud infrastructure reached $14.4 billion in the fourth quarter, increasing 13.9% compared to a year ago, and grew to $51.4 billion for 2021, an increase of 7.5%.

IDC expects to see continuously strong demand for shared cloud infrastructure with spending expected to surpass non-cloud infrastructure spending in 2022.

Spending on dedicated cloud infrastructure increased 12.5% year over year in Q421 to $6.7 billion and grew 11.8% to $22.5 billion for the full year 2021.

Of the total dedicated cloud infrastructure, 47.5% in Q421 and 46.1% in 2021 were deployed on customer premises said IDC.

 

About Bukola Olanrewaju

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