According to tech analyst IDC, spending on shared infrastructure is expected to overtake non-cloud spending in 2022.
For the full year 2022, IDC forecasts a 22% increase in spending on cloud infrastructure compared to 2021, reaching $90.2 billion. Although this is the highest annual growth rate since 2018, spending on traditional IT infrastructure is expected to increase by 1.8% to $60.7 billion.
At a regional level, IDC expects annual growth in cloud infrastructure spending in the range of 20% to 25% in Asia Pacific/Japan, China, the U.S., and Western Europe. However, Russia’s attack on Ukraine will reduce spending in Central and Eastern Europe to 54% in 2022.
Analysts expect total computing and storage cloud infrastructure spending to grow at an annual growth rate (CAGR) of 14.5% between 2021 and 2026. It forecasts spending to reach $145.2 billion in 2026, when it accounts for 69.7% of total computing and storage infrastructure spending.
Spending on non-cloud infrastructure is expected to increase by 1.2% to $63.1 billion by 2026.
While spending on cloud infrastructure accelerated during the pandemic, several factors are also contributing to this growth. These factors include greater purchasing of cloud-delivered infrastructure, inflation, and the gradual recovery of the world’s snarled supply chains and logistics networks.
The sources for this piece include an article in ZDNet.