Cloud IT Infrastructure Revenues Continue to Grow by Double Digits in 1Q18

According to IDC, vendor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 45.5% year over year in the first quarter of 2018 (1Q18), reaching $12.9 billion. IDC also raised its forecast for total spending on cloud IT infrastructure in 2018 to $57.2 billion with year-over-year growth of 21.3%.

Public cloud infrastructure quarterly revenue has more than doubled in the past three years to $9.0 billion in 1Q18, growing 55.8% year over year. Private cloud revenue reached $3.9 billion for an annual increase of 26.5%. The combined public and private cloud revenues now represent 46.1% of the total worldwide IT infrastructure spending, up from 41.8% a year ago. Traditional (non-cloud) IT infrastructure revenue grew 22.0% from a year ago, although it has been generally declining over the past several years; at $15.1 billion in 1Q18 it still represents 53.9% of total worldwide IT infrastructure spending.

All regions grew their cloud IT Infrastructure revenue by double digits in 1Q18. Asia/Pacific (excluding Japan) grew revenue the fastest, by 74.7% year over year. Next were USA (43.6%), Middle East & Africa (MEA) (42.3%), Central and Eastern Europe (CEE) (39.2%), Latin America (37.7%), Canada (29.4%), Western Europe (26.1%), and Japan (15.0%).