Security News > 2020 > January > Revenue from cloud IT infrastructure products declines

Vendor revenue from sales of IT infrastructure products for cloud environments, including public and private cloud, declined in the third quarter of 2019 as the overall IT infrastructure market continues to experience weakening sales following strong growth in 2018, IDC reveals.

Spending on private cloud IT infrastructure has shown more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments.

As cloud investments continue to increase, with some swings up and down in the quarterly intervals, the IT infrastructure industry is approaching the point where spending on cloud IT infrastructure consistently surpasses spending on non-cloud IT infrastructure.

For the full year 2019, cloud spending is expected to stay just below the 50% mark at 49.8%. 2020 is expected to become the tipping point with spending on cloud IT infrastructure staying in the 50+% range.

Geographically, the cloud segment had a mixed performance in 3Q19. Declines in the U.S., Western Europe, and Latin America were driven by overall market weakness; in these and some other regions 3Q19 softness in cloud IT infrastructure spending was also affected by comparisons to a strong 3Q18. In Asia/Pacific, the second largest geography after the U.S., cloud spending increased 1.2% year over year, which is low for this region.

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