Security News > 2020 > October > Public cloud IT infrastructure spending exceeds that for non-cloud IT infrastructure

Vendor revenue from sales of IT infrastructure products for cloud environments, including public and private cloud, increased 34.4% year over year in the second quarter of 2020, according to IDC. Investments in traditional, non-cloud, IT infrastructure declined 8.7% year over year in 2Q20. These growth rates show the market response to major adjustments in business, educational, and societal activities caused by the COVID-19 pandemic and the role IT infrastructure plays in these adjustments.

Spending on public cloud IT infrastructure increased 47.8% year over year in 2Q20, reaching $14.1 billion and exceeding the level of spend on non-cloud IT infrastructure for the first time.

While IDC increased its forecast for both cloud and non-cloud IT spending for the full year 2020, investments in cloud IT infrastructure are still expected to exceed spending on non-cloud infrastructure, 54.8% to 45.2%. Most of the increase in spending will be driven by public cloud IT infrastructure, which is expected to slow in 2H20 but increase by 16% year over year to $52.4 billion for the full year.

In all regions except Central & Eastern Europe and the Middle East & Africa, growth in public cloud infrastructure exceeded growth in private cloud IT. At the vendor level, the results were mixed.

Public cloud datacenters will account for 69.4% of this amount, growing at a 10.9% CAGR. Spending on private cloud infrastructure will grow at a CAGR of 9.3%. Spending on non-cloud IT infrastructure will rebound after 2020 but will continue to decline overall with a CAGR of -1.6%..

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