News

Cloud Now Makes Up a Third of All IT Infrastructure Spending

Cloud computing is becoming increasingly entrenched in datacenters, judging from recent figures from analyst firm International Data Corporation (IDC).

For the third quarter of 2014, nearly a third of combined IT infrastructure spending -- including hardware switches, storage and servers -- came from cloud deployments, IDC reported last month.

Cloud spending totaled $6.5 billion for the period, a 16 percent year-over-year increase. According to IDC, public cloud infrastructure comprised about half of that total.

In fact, spending on the public cloud is growing slightly faster -- 18 percent year over year -- than private cloud spending.

"Public and private clouds represent the 'compute factories' and 'digital content depots' of the 3rd Platform era," said IDC's Richard Villars said in the press release. "Whether internally owned or 'rented' from a service provider, cloud environments are strategic assets that organizations of all types must rely upon to quickly introduce new services of unprecedented scale, speed, and scope. Their effective use will garner first-mover advantage to any organization in a hyper-competitive market."

The IDC report was the first of its new Worldwide Quarterly Cloud IT Infrastructure Tracker, which follows IT spending specifically for the cloud market. It further breaks down the spending into public and private cloud sectors. The revenue is based on sales of three market segments: server, disk and networking technologies.

About the Author

Keith Ward is the editor in chief of Virtualization & Cloud Review. Follow him on Twitter @VirtReviewKeith.

Featured

  • Closeup of the new Copilot keyboard key

    Microsoft Updates Copilot To Add Context-Sensitive Agents to Teams, SharePoint

    Microsoft has rolled out a new public preview for collaborative "always on" agents in Microsoft 365 Copilot, bringing enhanced, context-aware tools into Teams channels, meetings, SharePoint sites, Planner workstreams and Viva Engage communities.

  • Windows 365 Cloud Apps Now Available for Public Preview

    Microsoft announced this week that Windows 365 Cloud Apps are now available for public preview. This aims to allow IT administrators to stream individual Windows applications from the cloud, removing the need to assign Cloud PCs to every user.

  • Report: Security Initiatives Can't Keep Pace with Cloud, AI Boom

    The increasingly fast adoption of hybrid, multicloud, and AI systems is easily outgrowing existing security measures, according to a recent global survey by the Cloud Security Alliance (CSA) and exposure management firm Tenable.

  • World Map Image

    Microsoft Taps Nebius in $17B AI Infrastructure Deal To Alleviate Cloud Strain

    Microsoft has signed a five-year, $17.4 billion agreement with Amsterdam-based Nebius Group to expand its AI computing capabilities through third-party GPU infrastructure.