Cloud Infrastructure on the Up Ahead of Hyperscale Growth

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IDC reports revenues from private and public cloud infrastructure (server, storage and ethernet switch) sales total $7.7 billion in Q2 2016-- a 14.5% Y-o-Y increase ahead of renewed hyperscale growth expected for H2 2016.

IDC Cloud infrastructure

W. Europe shows 41.2% Y-o-Y growth in Q2 2016, followed by CEE at 21% and MEA at 16.8%.

The overall Q2 2016 share of cloud infrastructure sales amounts to 34.9%, up from 30.6% in Q2 2016. Private cloud revenues show 14% Y-o-Y growth to $3.1bn, while public cloud is up by 14.9% to $4.6bn. In comparison, traditional (non-cloud) infrastructure sales decreased by -6.1% Y-o-Y in the quarter.

Leading private cloud infrastructure gorwth is ethernet switches with 49.4% Y-o-Y growth, followed by storage at 19.7% and server at 8.9%. Ethernetes switch also lead public cloud growth with 61.8% Y-o0Y growth, followed by server at 25.1%. However public cloud storage is on the decline at -6.2%.

"As expected, the hyperscale slow down continued in the second quarter of 2016," IDC says. "However, deployments to mid-tier and small cloud service providers showed strong growth, along with private cloud buildouts. In general, the second quarter did not have as difficult a compare to the prior year as the first quarter did, and this helped improve growth results across the board compared to last quarter. In the second half of 2016, IDC expects to see strengthening in public cloud growth as key hyperscalers bring new datacentres online around the globe, continued strength in private cloud deployments, and declines in traditional, non-cloud deployments."

Go IDC WW Quarterly Cloud IT Infrastructure Tracker October 2016