News
        
        Cloud IT Spending Has Outpaced 'Traditional IT' Spending
        
        
        
			- By Kurt Mackie
- January 22, 2019
Revenues from IT infrastructure  products sold to cloud service providers have surpassed revenues from  traditional IT infrastructure sales "for the first time," according to a recently published report by IDC.
 The report, "Worldwide Quarterly IT  Infrastructure" database, covers the third  quarter of 2018. Fourth-quarter data apparently  haven't been published yet. 
IDC examined revenues from cloud IT infrastructure spending in Q3 2018 based on server, storage and Ethernet switch sales.
Cloud IT infrastructure sales accounted for slightly more  than half (50.9 percent) of the "total worldwide IT infrastructure vendor  revenues" in Q3 2018, according to IDC. However, when estimated for the  full 2018 year, IDC expects that figure will drop to around 47.4 percent.
However, IDC expects that cloud IT infrastructure sales will  exceed traditional IT infrastructure sales in the next few years.
"By 2022, we expect that traditional non-cloud IT  infrastructure will only represent 42.4% of total worldwide IT infrastructure  spending (down from 52.6% in 2018)," the announcement indicated.
IDC's data also show public cloud spending overtaking  private cloud spending. In Q3 2018, public cloud spending reached $12.1 billion,  representing a 56.1 percent boost when compared year over year. Private cloud  spending during the same quarter reached $4.7 billion, representing a 28.3  percent year-over-year growth rate, according to IDC data. 
According to IDC, the top IT infrastructure sellers in Q3  2018 included Dell ($2.4 billion in revenue), HPE/H3C ($1.6 billion), Cisco ($1  billion), Inspur ($1 billion) and Lenovo ($810 million). Future spending growth  will mostly be seen on the compute platform side, according to IDC.
Overall cloud IT infrastructure spending is expected to  reach "$88.6 billion in 2022," representing "57.6% of total IT  infrastructure spend," IDC noted, adding that most of that spending (66.3  percent) will occur on the public cloud datacenter side.
        
        
        
        
        
        
        
        
        
        
        
        
            
        
        
                
                    About the Author
                    
                
                    
                    Kurt Mackie is senior news producer for 1105 Media's Converge360 group.