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Data centers, data storage benefit from cloud investments

Worldwide public and private cloud IT infrastructure spending, including server, storage and networking equipment, grew 9 percent to $32.6 billion in 2016, according to International Data Corp. (IDC).

The firm’s Worldwide Quarterly Cloud IT Infrastructure Tracker said vendor revenue from cloud-related technologies for the fourth quarter of 2016 increased 7 percent to $9.2 billion. Cloud IT infrastructure sales as a share of overall worldwide IT spending rose to 37 percent in the fourth quarter of 2016, up from 33 percent from a year ago.

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Revenue from infrastructure sales for private clouds grew by 10 percent to $3.8 billion, and for public clouds by 5 percent to $5.4 billion. In comparison, revenue in the traditional (non-cloud) IT infrastructure segment decreased 9 percent year over year in the fourth quarter.

"Growth slowed to single digits in 2016 in the cloud IT infrastructure market, as hyperscale cloud data center growth continued its pause," said Kuba Stolarski, research director for Computing Platforms at IDC. "Network upgrades continue to be the focus of public cloud deployments, as network bandwidth has become by far the largest bottleneck in cloud data centers.”

Data center build-outs and refreshes are expected to accelerate throughout 2017, IDC said, built on newer generation hardware.

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