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Cloud Computing: Public Cloud Dominates Infrastructure Spending
Cloud computing is big and it is only getting bigger. IDC estimates that in 2017 public cloud services will be a $122 billion market and grow to $203 billion by 2020, a compound annual growth rate of 21.5%. Of that money in 2017, about $41.7 billion will go towards cloud infrastructure.
Public cloud data centers is outstripping growth by hybrid and private clouds. IDC estimates that 60 percent of cloud data center infrastructure spending in 2017, things like servers, routers, switches and storage, will be spent by public cloud vendors. The remainder of cloud infrastructure is split fairly evenly between private and hybrid cloud spending.
Kuba Stolarski, research director for Computing Platforms at IDC, said that “network upgrades continue to be the focus of public cloud deployments, as network bandwidth has become by far the largest bottleneck in cloud datacenters. After some delays for a few hyperscalers, datacenter build outs and refresh are expected to accelerate throughout 2017, built on newer generation hardware, primarily using Intel’s Skylake architecture.?
