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Cloud IT infrastructure revenue surges ahead of renewed hyperscale growth

05 Oct 2016

Vendor revenue from sales infrastructure products for cloud IT grew by 14.5% to $7.7 billion in the second quarter of 2016.

That’s according to the International Data Corporation’s (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker.

Overall, the share of cloud IT infrastructure sales climbed to 34.9% in the second quarter, which IDC posted as up from 30.6% a year ago.

In addition, revenue from infrastructure sales to private cloud grew by 14.0% to $3.1 billion, and to public cloud by 14.9% to $4.6 billion.

For revenue in the traditional (non-cloud) IT infrastructure segment, there was a decrease by 6.1% year over year in the same quarter.

Ethernet switch led the private cloud infrastructure growth at 49.4%, followed by storage at 19.7% and server at 8.9%.

IDC found that public cloud growth was also led by Ethernet switch at 61.8%, followed by server at 25.1%, while storage revenue for public cloud declined 6.2% year over year.

Kuba Stolarski, research director for Computing Platforms at IDC, says as expected, the hyperscale slow down continued in the second quaeter of 2016.

"However, deployments to mid-tier and small cloud service providers showed strong growth, along with private cloud buildouts,” explains Stolarski.

“In general, the second quarter did not have as difficult a compare to the prior year as the first quarter did, and this helped improve growth results across the board compared to last quarter,” he adds.

“In the second half of 2016, IDC expects to see strengthening in public cloud growth as key hyperscalers bring new datacenters online around the globe, continued strength in private cloud deployments, and declines in traditional, non-cloud deployments."

While vendor revenue from cloud IT infrastructure sales grew fastest in Latin America at 44.0% year over yea, Asia/Pacific came in second to last at 15.8%.

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