Cloud IT infrastructure revenues rise 25.5% to USD 11.3 bln in Q3

Friday 12 January 2018 | 14:27 CET | News

Vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 25.5 percent year-on-year in the third quarter of 2017 to USD 11.3 billion driven by public cloud expansion, according to data from IDC. Dell leads the sales classification in the quarter with a 13.8 percent market share, followed by HPE/New H3C Group, Cisco, Huawei, Inspur, NetApp and ODM Direct.

Public cloud infrastructure revenue grew 32.3 percent year-on-year in Q3 2017 to USD 7.7 billion and now represents 30.2 percent of total worldwide IT infrastructure spending, up from 26.3 percent one year ago. Private cloud revenue reached USD 3.6 billion for an annual increase of 13.1 percent. Total worldwide cloud IT infrastructure revenue is on pace to nearly double in 2017 when compared to 2013. Traditional (non-cloud) IT infrastructure revenue grew 8.0 percent from a year ago, although it has been generally declining over the past several years. Despite the declining trend, at USD 14.2 billion in Q3 2017, traditional IT still represents 55.6 percent of total worldwide IT infrastructure spending.

Public cloud also represented 68.0 percent of the total cloud IT infrastructure revenue in Q3 2017. The market with the highest growth in the public cloud infrastructure segment was Storage Platforms with revenue up 45.1 percent compared to the same quarter of the previous year, and making up 42.0 percent of the revenue in public cloud. Compute Platforms and Ethernet Switch public cloud IT infrastructure revenues were up 24.8 percent and 23.2 percent, respectively. Compute Platforms represented 43.9 percent of public cloud IT infrastructure revenue. Private cloud infrastructure revenue was driven by the Storage Platforms growth of 16.1 percent year-on-year.

Except for Latin America revenue, which grew 5.0 percent from a year ago, all other regions in the world grew their cloud IT Infrastructure revenue by double digits. Asia/Pacific (excluding Japan) and Central and Eastern Europe (CEE) saw the fastest growth rates at 50.1 percent and 35.3 percent, respectively. Canada (22.5 percent) and Western Europe (24.6 percent) had annual growth in the twenties, while the U.S. (18.7 percent), Japan (17.5 percent), and Middle East & Africa (MEA) (15.8 percent) had annual growth in the teens.

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