TMCnet News

Worldwide Cloud IT Infrastructure Market Grows by 14.4% in the Fourth Quarter as Service Providers Continue to Expand Their Datacenters, According to IDC
[April 16, 2015]

Worldwide Cloud IT Infrastructure Market Grows by 14.4% in the Fourth Quarter as Service Providers Continue to Expand Their Datacenters, According to IDC


According to International Data Corporation's (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, total cloud IT infrastructure spending (server, disk storage, and ethernet switch) grew by 14.4% year over year to $8.0B in the fourth quarter of 2014 (4Q14), accounting for approximately 30% of all IT infrastructure spend, up from about 27% one year ago. Private cloud infrastructure spending grew by 18.3% year over year to $2.9B, while public cloud infrastructure spending grew to $5.0B, 12.3% higher than one year ago.

For the full year 2014, cloud IT infrastructure spending totaled $26.4B, up 18.7% year over year from $22.3B; private cloud spending was just under $10.0B, up 20.7% year over year, while public cloud spending was $16.5B, up 17.5% year over year.

"The transition to cloud-oriented infrastructure and data platform architectures within enterprises' datacenters continues to accelerate, yet the expansion of public cloud infrastructure in service providers' datacenters around the world is an even larger driver of IT spending," observed Richard Villars, Vice President, Datacenter and Cloud research at IDC (News - Alert). "A key driver of this acceleration is organizations' development and use of new Internet of Things services that require levels of agility and scale that only cloud solutions can deliver."

For this second quarterly release of Cloud IT market results, IDC has expanded its worldwide coverage to include detail for 8 regions: Asia/Pacific (ex. Japan), Canada, Central & Eastern Europe, Japan, Latin America, Middle East & Africa, USA, and Western Europe. In 4Q14, USA had the highest share of overall cloud IT infrastructure spending with 64%, followed by Asia/Pacific (ex. Japan) with 17% and Western Europe with 12%. Western Europe had the highest growth in cloud IT infrastructure spending with 30% year over year growth.





 

Top 5 Corporate Family, Worldwide Cloud IT Infrastructure Vendor Revenue, Fourth Quarter of 2014 (Revenues are in Billions)

Vendor   4Q14 Revenue  

4Q14 Market
Share

  4Q13 Revenue  

4Q13 Market
Share

 

4Q14/4Q13
Revenue
Growth

1. HP   $1.2   16.2%   $1.2   19.8%   -6.6%
2. Dell $0.7 9.6% $0.6 9.3% 17.3%
3. EMC $0.6 8.8% $0.5 7.8% 27.5%
4. Cisco (News - Alert) $0.6 7.8% $0.5 7.5% 17.9%
5. IBM (News - Alert) $0.4 5.0% $0.7 10.6% -46.3%*
ODM Direct $2.1 29.9% $1.6 24.8% 37.2%
Others $1.6 22.7% $1.3 20.2% 27.6%
 
Total $7.2 100% $6.3 100% 13.7%
 

IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2015


*IBM's divestiture of its x86 business to Lenovo (News - Alert) on October 1, 2014 has a negative impact on year over year comparisons for 4Q14.

 

Top 5 Corporate Family, Worldwide Cloud IT Infrastructure Vendor Revenue, Calendar Year 2014 (Revenues are in Billions)

Vendor   2014 Revenue  

2014 Market
Share

  2013 Revenue  

2013 Market
Share

 

2014/2013
Revenue
Growth

1. HP   $3.7   15.7%   $3.5   17.4%   6.3%
2. Dell $2.6 10.7% $2.4 11.8% 7.2%
2. Cisco $2.1 8.7% $1.7 8.5% 21.2%
4. EMC $1.9 8.0% $1.4 7.1% 34.3%
5. IBM $1.7 7.3% $2.2 10.7% -18.9%*
ODM Direct $6.6 27.8% $4.8 23.9% 37.3%
Others $5.2 21.7% $4.2 20.7% 4.7%
 
Total $23.9 100% $20.2 100% 17.9%
 

IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, April 2015

*IBM's divestiture of its x86 business to Lenovo on October 1, 2014 has a negative impact on year over year comparisons for 2014.

IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker is designed to provide clients with a better understanding of what portion of the server, disk storage systems, and networking hardware markets are being deployed in cloud environments. This tracker will break out vendors' revenue by the hardware technology market into public and private cloud environments for historical data and also provide a five-year forecast by the technology market.

Taxonomy Notes:

IDC defines cloud services more formally through a checklist of key attributes that an offering must manifest to end users of the service. Public cloud services are shared among unrelated enterprises and consumers; open to a largely unrestricted universe of potential users; and designed for a market, not a single enterprise. The public cloud market includes variety of services designed to extend or, in some cases, replace IT infrastructure deployed in corporate datacenters. It also includes content services delivered by a group of suppliers IDC calls Value Added Content Providers (VACP). Private cloud services are shared within a single enterprise or an extended enterprise with restrictions on access and level of resource dedication and defined/controlled by the enterprise (and beyond the control available in public cloud offerings); can be onsite or offsite; and can be managed by a third-party or in-house staff. In private cloud that is managed by in-house staff, "vendors (cloud service providers)" are equivalent to the IT departments/shared service departments within enterprises/groups. In this utilization model, where standardized services are jointly used within the enterprise/group, business departments, offices, and employees are the "service users."

For more information about IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker, please contact Lidice Fernandez at 305-351-3057 or [email protected].

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter (News - Alert) at @IDC.

All product and company names may be trademarks or registered trademarks of their respective holders.


[ Back To TMCnet.com's Homepage ]