In the Q3 of 2022, increased demand and improved supply chains drove substantial growth in spending on compute and storage infrastructure products for cloud deployments. At an impressive 24.7% year-over-year increase to $23.9 billion, cloud investments far outpaced their non-cloud counterpart’s 16.5%, reaching $ 16.8 billion.
Shared cloud infrastructure spending reached $16.8 billion in Q3 2022, increasing 24.4% compared to a year ago. IDC expects strong demand for shared cloud infrastructure to continue, with spending expected to surpass non-cloud infrastructure spending in 2023. The dedicated cloud infrastructure segment grew 25.3% year over year in Q3 2022 to $7.1 billion, with 45.2% of the total deployed on customer premises.
In 2022, IDC has predicted that cloud infrastructure spending will rise significantly – a 19.6% increase from 2021’s 8.6%. Shared and dedicated cloud investments are expected to hit robust numbers of $60.9 billion and $27.3 billion respectively for the full year; additionally, non-cloud infrastructure is forecasted to amass an impressive 10.7 % growth reaching $64 .7billion.
IDC monitors the amount of compute and storage technology – ranging from cloud to non-cloud-based solutions, utilized across a variety of service providers including cloud service providers, digital service providers, communications service providers, and managed service providers.
In the third quarter of 2022, service providers spent $23.9 billion on compute and storage infrastructure, which is 22.5% more than they did in the previous year. This spending made up 58.7% of the total market. Non-service providers, such as enterprises and government agencies, increased their spending by 19.3% year over year.
According to IDC, compute and storage spending by service providers is expected to reach $87.8 billion in 2022, growing at 17.5% per year.
In the third quarter of 2022, spending on cloud infrastructure grew in all regions except Central and Eastern Europe (CEE), which was impacted by the Russia-Ukraine war. In CEE, spending declined 35.1% year over year.
The Middle East and Africa (MEA), the United States (USA), and Western Europe are estimated to see sizable year-over-year increases of 65.8%, 32.1%, and 31.3% respectively – while other regions will experience growth in double digits as well.
For 2022, global cloud infrastructure investments are projected to surge significantly throughout most regions. Particularly in Asia/Pacific (excluding Japan and China), MEA, USA, and Western Europe – with these areas all expecting growth between 20-35% year-over-year.
As investments in cloud infrastructure surge forward, IDC forecasts a 12.9% compound annual growth rate over the 2021-2026 period with investment reaching $135.1 billion by 2026 and accounting for 67.3% of total compute and storage spend across the globe.
Growing at a 13.8% CAGR, shared cloud infrastructure will account for 72.3% of the total cloud spending. Spending on dedicated cloud infrastructure will also increase at a CAGR of 10.7% to reach $37.4 billion.
Spending on non-cloud infrastructure will grow at a CAGR of 2.3%, reaching $65.6 billion in 2026. Service providers’ spending on compute and storage infrastructure will increase at a CAGR of 12.1% in 2026 to reach $131.9 billion.
Source: IDC
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