Global cloud IT infrastructure spending to reach US$69.2bn in 2020

AdobeStock 309095836Statistics show that 70 per cent of businesses plan to adopt private cloud solutions this year, followed by 63 per cent companies who would prefer multi-cloud solutions

According to a global CIO survey, public cloud adoption was an important draw for many companies in 2020, with 79 per cent of the polled groups planning to adopt cloud technology in a big or small measure. Artificial Intelligence or machine learning ranked the second-most wanted technology, with 72 per cent firms planning to use it in 2020.

According to data gathered by LearnBonds, the global cloud IT infrastructure spending is expected to grow by 3.6 per cent year-on-year, reaching US$69.2bn in 2020.

Cloud computing has changed the way people communicate, manage data and do business. Billions of private and business users take advantage of on-demand technology.

The examples of cloud computing use can be found practically everywhere, from social networking, messaging apps and streaming services to business processes, office tools, chat bots or lending platforms.

Billions of people use personal cloud storage to manage and store private data. However, it is the ability to provide access to computing power, deemed extremely expensive, that has seen the spread of cloud technology so widely.

The International Data Corporation's (IDC) five-year forecast predicts that cloud IT infrastructure spending will reach U$100.1bn by 2024, growing by a compound annual rate of growth of 8.4 per cent.

However, with coronavirus lockdown rules in place and millions of people spending more time indoors and online, the global demand for cloud services has soared over the last few months. This growing need for cloud solutions has led to increased spending on hardware and software components needed to support the computing requirements.

The IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker and Statista data revealed that the global spending on cloud IT infrastructure, including hardware, abstracted resources, storage and network resources amounted to US$22.3bn in 2013. Over the next four years, this amount grew to US$47.4bn.

The growing need for cloud solutions has led to a surge in the vendor revenue from cloud IT infrastructure. In 2019, they made a profit of U$63.97b by selling these IT products and solutions, which was 30 per cent more than the previous profit figures in 2017.

Additionally, the 2019 data showed that ODM Direct held 32 per cent of the market. Dell Technologies and HPE follow with 16 per cent and 11.7 per cent market share, respectively.

IDC`s report revealed that public cloud infrastructure spending is expected to drive the global market growth this year.

Kuba Stolarski, research director, infrastructure systems, platforms and technologies at IDC, said, “As enterprise IT budgets tighten through the year, the public cloud will see an increase in demand for services. This increase will come in part from the surge of work-from-home employees using online collaboration tools, but also from the migration of workload to the public cloud, as enterprises seek ways to save money this year. Once the coast is clear of the coronavirus, we expect some of this new cloud service demand to remain sticky going forward."

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