Cloud IT Infrastructure Revenues Had Double-digit Growth in 3Q17

According to IDC, vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 25.5% year over year in the third quarter of 2017 (3Q17), reaching $11.3 billion.

Public cloud infrastructure revenue grew 32.3% year over year in 3Q17 to $7.7 billion and now represents 30.2% of total worldwide IT infrastructure spending, up from 26.3% one year ago. Private cloud revenue reached $3.6 billion for an annual increase of 13.1%. Total worldwide cloud IT infrastructure revenue is on pace to nearly double in 2017 when compared to 2013. Traditional (non-cloud) IT infrastructure revenue grew 8.0% from a year ago, although it has been generally declining over the past several years; despite the declining trend, at $14.2 billion in 3Q17 traditional IT still represents 55.6% of total worldwide IT infrastructure spending.

Public cloud also represented 68.0% of the total cloud IT infrastructure revenue in 3Q17. The market with the highest growth in the public cloud infrastructure segment was Storage Platforms with revenue up 45.1% compared to the same quarter of the previous year, and making up 42.0% of the revenue in public cloud. Compute Platforms and Ethernet Switch public cloud IT infrastructure revenues were up 24.8% and 23.2%, respectively. Compute Platforms represented 43.9% of public cloud IT infrastructure revenue. Private cloud infrastructure revenue was driven by the Storage Platforms growth of 16.1% year over year.

Except for Latin America revenue, which grew 5.0% from a year ago, all other regions in the world grew their cloud IT Infrastructure revenue by double digits. Asia/Pacific (excluding Japan) and Central and Eastern Europe (CEE) saw the fastest growth rates at 50.1% and 35.3%, respectively. Canada (22.5%) and Western Europe (24.6%) had annual growth in the twenties, while the U.S. (18.7%), Japan (17.5%), and Middle East & Africa (MEA) (15.8%) had annual growth in the teens.