EMEA Q1 cloud IT infrastructure revenue grows to USD 1.3 bln

Nieuws Breedband Afrika 5 JUL 2016
EMEA Q1 cloud IT infrastructure revenue grows to USD 1.3 bln

Cloud IT infrastructure revenue in Europe, the Middle East and Africa (EMEA) grew by 17.6 percent on year to USD 1.3 billion in the first quarter, according to the International Data Corporation (IDC). The cloud-related share of total EMEA infrastructure expenditure on server, disk storage, and Ethernet switch grew by 4 percentage points compared with last year to more than 25.1 percent. In terms of storage capacity, cloud represented around 29.9 percent of total EMEA capacity, with a 6.1 percent decline over the same period a year before.

Looking at the market in euros, EMEA in reported strong year-on-year user value growth (20.1%) in public and private cloud across servers, storage, and switches. IDC expects this market to reach a value of USD 10.7 billion by 2020, or 46.4 percent of total market expenditure, making it one of the strongest growth areas for the European infrastructure sector, compared with the expectation of a stagnant, if not declining, traditional market, said Kamil Gregor, research analyst for the European Infrastructure Group at IDC.

For the scope of this tracker, IDC has tracked Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Lenovo, NetApp, Oracle, the major ODM vendors, and others. This quarter's tracker does not include an assessment of the impact of the UK leaving the EU, given that there is still a high level of uncertainty about potential effects on ICT markets as political developments unfold.

The emerging markets of Central and Eastern Europe, the Middle East, and Africa (CEMA) took 15 percent of EMEA cloud investments. The share is flat compared with the previous quarter, though the split between the CEE and MEA regions shifted in favor of MEA.

Continuously challenging macroeconomic conditions in Russia and weaker investments in the public cloud segment were the main reasons for the shift. Cloud infrastructure spending in the CEMA region is estimated to be 17 percent of the total addressable server, storage, and networking hardware market, with public cloud accounting for about 47 percent of this share.

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