Security News > 2022 > January > Cloud infrastructure spending jumped to $18.6B in 3Q21

Investments in non-cloud infrastructure increased 7.3% year over year in 3Q21 to $14.6 billion, the third consecutive quarter to see an increase in year-over-year spend after a period of declining spending that started in 2Q19. Spending on shared cloud infrastructure reached $13 billion, an increase of 8.6% compared to 3Q20, and a 6.6% increase from the previous quarter.

IDC expects to see continuously strong demand for shared cloud infrastructure with spending surpassing non-cloud infrastructure spending in 2022.

For the full year 2021, cloud infrastructure spending is expected to grow 8.3% compared to 2020 to $71.8 billion, while non-cloud infrastructure is expected to grow 1.9% to $58.4 billion after two years of declines.

The Asia/Pacific region showed the strongest year-over-year increase in cloud infrastructure spending in 3Q21 at 64.3% while the U.S. recorded the weakest growth at 1.1%. For the full year, spending on cloud infrastructure is expected to increase across all regions compared to 2020, particularly in Asia/Pacific regions, Canada, and Central & Eastern Europe.

The United States is expected to show only marginal year-over-year growth of 0.4%. Long term, spending on compute and storage cloud infrastructure is expected to have a compound annual growth rate of 12.4% over the 2020-2025 forecast period, reaching $118.8 billion in 2025 and accounting for 67.0% of total compute and storage infrastructure spend.

Shared cloud infrastructure will account for 70.9% of this amount, growing at a 12.7% CAGR. Spending on dedicated cloud infrastructure will grow at a CAGR of 11.5%. Spending on non-cloud infrastructure will rebound in 2021 but will flatten out at a CAGR of 0.5%, reaching $58.6 billion in 2025.

News URL

https://www.helpnetsecurity.com/2022/01/31/cloud-infrastructure-spending-3q21/