Despite cloud infrastructure spending figures declining in the second quarter of the year, it is expected that it will grow 12% to $74.3 billion by 2021.
Indeed, it was found out that after six consecutive quarters of year-on-year growth, spending on compute and storage infrastructure products for cloud infrastructure declined by 2.4% in the three months to the end of June. However, it was noted that the overall market is on the up, and unusual spending patterns triggered by the pandemic contributed to unexpected interim figures.
IDC is then expecting cloud infrastructure spending to grow 12% to $74.3 billion for 2021 and non-cloud infrastructure to increase 2.7% to $58.9 billion after two years of declines. Shared cloud infrastructure will also witness growth by 11.1% this year to $51.4 billion, as well as a growth of 14.1% to $22.8 billion for spending on dedicated cloud infrastructure.
It was also reported that spending on shared cloud infrastructure was at $11.9 billion in Q2, which is down by 6.1% compared to a year ago, but an increase of 17% compared with Q1. Besides, spending on dedicated cloud infrastructure grew by 7.8% on-year in Q2 to $4.9 billion.
Hence, it is forecast that compute and storage spending by service providers will reach $74.6 billion in 2021 as a whole.