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Cloud IT infrastructure spending slows down, but revenue increases

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Good news for professionals in the IT infrastructure market, given that the latest figures published by the IDC (International Data Corporation) within its last report, indicate the good time by which technology and cloud environments are passing.

Taking into account the sale of products such as servers, Ethernet switch and enterprise storage, applying the data to the sum of public and private clouds, we see that there has been a growth of 11.4% compared to last year. In combination with this, IDC has also mentioned that investment in cloud IT infrastructure by 2019 will be reduced to 66.9 billion in 2019.

 

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Contrasts in investment volumes

Thanks to IDC we know that sales in hardware infrastructure for public cloud environments fluctuates and still does not provide stable data. Revenues are reduced by 13.4%, but they increase by 8.9% in the year over year. The main obstacle that exists in the public cloud is that investment trends have ups and downs that lead to the resulting figures are not as positive as can be imagined in a single quarter. And although in 2018 the cloud experienced a great moment, in this 2019 is cooling and although it will continue to be the bulk of investments in the cloud, its market share will be reduced from 69.1% in 2018 to 66.5 % in 2019.


In contrast to the deceleration of the public cloud is the private cloud, IT infrastructure that has had a more stable role at the beginning of the year 2019. But the sum of both aspects of the cloud is positive and growth levels are expected, at least 10.1% year over year

 

The power of the cloud

The market is supporting the cloud as an IT infrastructure for the future. If we compare the figures of the cloud with those obtained by traditional IT environments we will see that the resulting data is interesting. At the end of 2018 there was a big jump in revenue in cloud environments and a 50% share was reached, something that had never happened before.

Currently the figures have fallen a bit and at the end of the first quarter of 2019 they are at 48.8%, with the forecast that by the end of 2019 they will have reached 49.4%. But it is a young technology that still needs space to mature. From IDC, analysts believe that growth will be stable year after year and that by 2020 the psychological barrier of 50% will have been definitively overcome.

 

The most requested products

There are two clear technological segments in cloud IT that will grow in the coming months: Ethernet switches and storage platforms. What remains on the other side of the balance are the compute platforms, whose figures are falling in the current year by 2.8%, but which will continue to have the largest market share. The most notable growth will be on the Ethernet switches, with an improvement of 20.9% in this 2019. On the other hand, the storage platforms will only grow by 1.9%, but it is within the forecasts.

 

The cloud in the future

The key moment to confirm the domain of cloud IT technology will be in 2023, in which IDC reports that traditional infrastructure will only have a global share of 42.4%. The traditional market will experiment a fall back while the advantage will be taken by the cloud industry, which will continue to grow.

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