$23 billion cloud spending spree still ahead in 2016

When it comes to the cloud, it seems there’s no stopping the growth or the trends that have surrounded it from the beginning. On that track, the public cloud is set to see a continued rush of growth in 2016 according to the latest Quarterly Cloud Infrastructure Tracker report from International Data Corp (IDC). The report says that in the second half of the year, major public cloud providers like Amazon Web Services (AWS) and Microsoft will significantly increase spending on data center hardware. A sign of ongoing cloud growth, there is a balancing decline in orders of traditional on-premise data center equipment with a drop of 4.4 percent over the entire year. Comparatively, cloud infrastructure expenditures are set to experience a 19 percent bump over just a year ago. That rate of growth contrasts well with one-premise expenditures in an ever-cloud focused world.

Not to be outdone, the report also projects a 10 percent increase for private cloud hardware expenditures, also known as ‘on-premise’ clouds. By the end of 2016, the market will see $13.8 billion spent in this field.

None of this project would be much without a look ahead at the future, and the IDC report delivers on that very notion. Over the next five years, the amount spent on the public cloud will increase by 19 percent, private cloud spending will increase by 10 percent, while traditional IT spending overall will continue to decline.

More cloud for all

What it means is more of a transition towards cloud-focused hardware products, more cloud-focused software products, and more cloud-based services are ahead. For the average Managed Service Provider, this report indicates a need to shift delivery and service products towards subscription-based services and advanced information technology services. Hardware manufacturers will continue to reap benefits from the growth in cloud, and related products will continue to serve their clients in this ongoing transition.

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