The pandemic has led to a major shift in how businesses and consumers use online services, which is why analytics firm IDC believes Q2 of this year marked a tipping point as cloud sales outpaced non-cloud infrastructure for the first time.
According to the company’s Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenues from the sale of IT infrastructure products for cloud environments, including servers, enterprise storage, and Ethernet switches, increased 34.4% year-over-year during the second. quarter. At the same time, however, investments in traditional non-cloud infrastructure declined by 8.7% yoy over the same period.
During the pandemic there was a worldwide shift to online tools for both businesses and consumers and this has led to an increase in the adoption of cloud-based collaboration software, video conferencing and telemedicine software.
During the second quarter of this year, public cloud IT infrastructure spending increased 47.8% year-over-year to $ 14.1 billion, while private cloud infrastructure spending increased increased 7% year-over-year to $ 5 billion with local private cloud accounting for 64.1 percent of that amount.
Point of no return
IDC believes that the hardware infrastructure market has reached a tipping point and that cloud environments will continue to account for an increasingly large share of overall spending.
Cloud IT infrastructure spending increased in all regions during the second quarter of this year, with China and the United States having the highest annual growth rates of 60.5% and 36.9% respectively. %. In addition, in all regions except Central and Eastern Europe, the Middle East and Africa, the growth of public cloud infrastructure outpaced the growth of private cloud IT during this time period.
When it comes to leading companies in the cloud IT infrastructure market, Dell Technologies took the top spot with 2.4 billion in revenue and 13.2% market share, followed by HPE / New H3C Group with nearly $ 2 billions in revenue and a market share of 10.4%. Inspur and Inspur Power Systems ranked third, followed by Lenovo and Cisco.
Now that companies across industries have learned that their employees can work productively from home, expect cloud spending to remain high, especially as workers will likely want to continue using the software and services they used while working from. remote when they return to the office.
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