Spending on compute and storage cloud infrastructure is projected to grow by 11.3% over the 2021-2025, reaching $112.9 billion in 2025, according to the International Data Corporation (IDC).
As the market and the world begin to emerge from the pandemic, sectors of the economy that suffered the most revenue loss are returning to growth, according to the report.
The pandemic has left a lasting impact on IT infrastructure. Experts predict there will be an increased dependence on cloud platforms for delivering commercial, educational, and social applications. Many of which cloud platforms were essential among organizations to continue business continuity amid the pandemic, which in turn, helped to drive digital transformation initiatives and increase usage of as-a-service delivery models for providers.
According to the report, spending on shared cloud infrastructure increased 11.6% year over year in the first quarter of 2021, reaching $10.3 billion. Cloud infrastructure spending is expected to surpass non-cloud infrastructure spending in the near future.
IDC experts also predict cloud environments will continue to outpace non-cloud throughout the 2021-2025 forecast.
Top cloud infrastructure vendors, such as Dell Technologies, Cisco, and IBM grew their cloud infrastructure revenue in the firs quarter of 2021. The highest growth rates belonged to Lenovo at 38.2% and Huwei at 37.9%.
Spending by service providers on compute and storage infrastructure is expected to grow by 10.1%, reaching $108.8 billion in 2025.
Spending on non-cloud infrastructure will rebound slightly in 2021 but will flatten out at 0.3%, reaching $57.9 billion in 2025, says IDC.
Cloud computing is helping businesses and people during the pandemic — and it’s only going to get bigger. Cloud computing should be a top priority for any digital transformation strategy.