Latest figures from IDC show that revenue from public cloud infrastructure sales grew by almost 26 percent to $4.6 billion in the third quarter of 2015, beating private cloud infrastructure sales, which grew 18.8 percent.
Key stats include:
- Worldwide cloud IT infrastructure spend grew 23.0% to $7.6 billion in the third quarter.
- The overall share of cloud IT infrastructure sales climbed to 33.8% in 3Q15, up from 28.7% a year ago.
- Revenue from infrastructure sales to private cloud grew by 18.8% to $2.9 billion, and to public cloud by 25.9% to $4.6 billion.
- In comparison, revenue in the traditional (non-cloud) IT infrastructure segment decreased by 3.2% year over year in the third quarter, with declines in all three technology segments (server, storage and networking).
- All three technology markets showed strong year-over-year growth in both private and public cloud segments, with server experiencing the highest growth in private cloud at 24.3% and networking with the highest growth in public cloud at 37.8%. Public cloud spending on storage grew 26.7% year on year.
Kuba Stolarski , Research Director for Computing Hardware and Platforms at IDC said:
“IDC continues to see healthy double-digit growth in cloud IT deployments in the market with an increasing preference for public cloud infrastructure. Customers are modernizing their infrastructures, having a progressively larger number of viable options for cloud deployments either on or off premises. These customers depend on a mix of as-a-service offerings and traditional infrastructure to help meet the IT transformation requirements of their organizations. As public cloud offerings continue to evolve and improve in reliability and security, customers are becoming more comfortable with the flexibility that they get by deploying certain workloads in these elastic environments.”
Where there is infrastructure, orchestration is needed
As with all cloud deployments, where there are more servers, storage, and Ethernet switches, the more cloud orchestration solutions are needed. Manually managing this infrastructure is not profitable if cloud service providers plan to compete with cloud giants. Instead, it calls for cloud orchestration that can not only handle the management of the infrastructure, but add additional value on top – cloud metering and billing, flexile self-service, multi-hypervisor and multi-tiered storage, scalable architecture, third party plugins.