Intelligent Data Centres Issue 05 | Page 29

EDITOR’S QUESTION HOW HAS THE CLOUD IMPACTED DATA CENTRES? he IT infrastructure industry is at a crossroads in terms of product sales to cloud vs. traditional IT environments, according to the International Data Corporation (IDC). T IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker showed vendor revenue from sales of IT infrastructure products (server, enterprise storage and Ethernet switch) for cloud environments, including public and private cloud, grew WITH VENDORS AND SERVICE PROVIDERS FINDING NEW WAYS OF DELIVERING CLOUD SERVICES, INCLUDING FROM IT INFRASTRUCTURE DEPLOYED AT CUSTOMER PREMISES, END USERS HAVE FEWER OBSTACLES AND PAIN POINTS IN ADOPTING CLOUD/SERVICES- BASED IT. www.intelligentdatacentres.com 11.4% year over year in the first quarter of 2019 (1Q19), reaching US$14.5 billion. But IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to US$66.9 billion – down 4.5% from last quarter’s forecast – with slower year- over-year growth of 1.6%. Vendor revenue from hardware infrastructure sales to public cloud environments in 1Q19 was down 13.4% compared to the previous quarter (4Q18) but increased 8.9% year over year to US$9.8 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings. Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches and storage platforms while compute platforms are expected to decline in 2019. Ethernet switches are expected to be the fastest growing at 20.9%, while spending on storage platforms will grow slightly at 1.9%. Meanwhile, compute platforms will decline by 2.8% in 2019 but will remain the largest category of spending on cloud IT infrastructure at US$34.2 billion. Sales of IT infrastructure products into traditional (non-cloud) IT environments remained flat compared to 1Q18, according to IDC. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 3.5%, as the technology refresh cycle that drove market growth in 2018 is winding down. By 2023, IDC expects that traditional non- cloud IT infrastructure will only represent 42.4% of total worldwide IT infrastructure spending (down from 51.9% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions. Natalya Yezhkova, Research Vice President, Infrastructure Systems, Platforms and Technologies at IDC, said: “As the overall IT infrastructure goes through a period of slowdown after an outstanding 2018, the important trends might look somewhat distorted in the short term. “IDC’s long-term expectations strongly back continuous growth of cloud IT infrastructure environments. With vendors and service providers finding new ways of delivering cloud services, including from IT infrastructure deployed at customer premises, end users have fewer obstacles and pain points in adopting cloud/ services-based IT.” Issue 05 29