Beancounters at IDC have added up some numbers and concluded that while IT infrastructure spending is slowing actual revenue is rising.
Non-cloud infrastructure sales are continuing to decline and any money being spent is going on servers, storage products and Ethernet switches for hosted environments.
However prominent hardware vendors and their channel partners will get to see cloud infrastructure revenues continue to increase and it is predicting that while total spending on cloud IT infrastructure by 4.5 per cent this year in response to slow growth in the market, somehow vendors will keep coining it in.
IDC is expecting things to cool down this year and eventually everyone will suffer.IDC research vice president, Infrastructure Systems, Platforms and Technologies Natalya Yezhkova said that as the overall IT infrastructure goes through a period of slowdown after an outstanding 2018, the critical trends might look somewhat distorted in the short term.
“IDC’s long-term expectations strongly back the continuous growth of cloud IT infrastructure environments. With vendors and service providers finding new ways of delivering cloud services, including from IT infrastructure deployed at customer premises, end users have fewer obstacles and pain points in adopting cloud/services-based IT,” she added.
IDC’s analysis of Q1 found that vendor revenue from hardware infrastructure sold into public cloud environments was down 13.4 percent year-on-year, but compared to Q4 it improved 8.9 percent. Spending on private cloud was positive with revenues climbing 16.9 percent year-on-year.
In the third quarter of last year, the infrastructure went past a tipping point with the cloud overtaking traditional environments, but it has since slipped back to under the 50 per cent mark to 48.8 percent of vendor revenues. But in the longer term, the sales into traditional environments will continue to decline with a 3.5 percent drop coming in 2019.
Dell is the market leader with a 17.8 percent market share, followed by HPE, Cisco and Lenovo.
