Cloud Money

Vendor Revenue from Infrastructure Sales to Public Cloud Hit $4.6B in Q3 2015

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As revenue in the traditional IT infrastructure segment declines, revenue from infrastructure sales to public cloud grew by 25.9 percent to $4.6 billion in Q3 2015.

According to the International Data Corporation’s Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenue from sales of infrastructure products, including server, storage, and Ethernet switch, grew by 23 percent year-over-year to $7.6 billion in Q3 2015.

While revenue in the non-cloud IT infrastructure segment decreased by 3.2 percent year over year in the third quarter, the overall share of cloud IT infrastructure sales reached 33.8 percent in Q3, up from 28.7 percent in Q3 2014.

 

“IDC continues to see healthy double-digit growth in cloud IT deployments in the market with an increasing preference for public cloud infrastructure,” Kuba Stolarski, Research Director for Computing Hardware and Platforms at IDC said in a statement. “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.”

Read more: Competition, Rapid Product Innovation Drive Down Enterprise Cloud Costs: Report

According to the report, while public cloud is clearly the preference, revenue from infrastructure sales to private cloud grew by 18.8 percent to $2.9 billion.

Public cloud spending on storage grew 26.7 percent year over year, while servers experienced the highest growth in private cloud at 24.3 percent. Ethernet switch had the highest growth in public cloud at 37.8 percent in Q3 2015.

Vendor revenues from cloud IT infrastructure sales were strongest in Asia, with Japan at 247.1 percent year over year, followed by Asia Pacific (excluding Japan) at 35.3 percent. In the US, revenues grew by 20.1 percent.

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