According to Synergy Research Group’s results, annual spending on cloud infrastructure services has gone from virtually zero to almost $100 billion.
Synergy Research Group’s detailed review of enterprise IT spending over the last ten years shows that while enterprise spending on data center hardware and software has been stagnant through much of the decade, annual spending on cloud infrastructure services has gone from virtually zero to almost $100 billion. Over the whole decade, average annual spending growth for data center was 4% and that’s mostly because of the first three years, and for cloud services was 56%.
Synergy’s Q4 forecast for 2019 was based on actual spending between Q1 and Q3. According to the results, 2019 worldwide spending on data center hardware and software will be over $93 billion. Synergy also projects that 2019 worldwide spending on cloud infrastructure services will reach $97 billion. The highest growth rates over the decade were mainly within PaaS, especially database, IoT and analytics.
John Dinsdale, a Chief Analyst at Synergy Research Group said:
“The decade has seen a dramatic increase in computer capabilities, increasingly sophisticated enterprise applications and an explosion in the amount of data being generated and processed, pointing to an ever-growing need for data center capacity. However, over half of the servers now being sold are going into cloud providers’ data centers and not those of enterprises. Over the last ten years, we have seen a remarkable transformation in the IT market. Enterprises are now spending almost $200 billion per year on buying or accessing data center facilities, but cloud providers have become the main beneficiaries of that spending.”