Spending on compute and storage infrastructure products for cloud deployments increased to $25.4 billion in the third quarter of 2023 (3Q23), according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment.
"Cloud infrastructure spending continues shifting towards robust configurations aiming to address more complex workloads and supporting new AI initiatives," said Juan Pablo Seminara, research director of Worldwide Enterprise Infrastructure Trackers.
Shared cloud infrastructure
Spending on shared cloud infrastructure reached $18.5 billion in 3Q23 and captured the largest spending share, accounting for 45.9% of total infrastructure spending in the quarter.
Japan (16.0%), China (15.5%), and Asia/Pacific (excluding Japan and China) (10.0%) increased spending in 3Q23.
Spending predictions
From 2022-2027, IDC predicts global spending on cloud infrastructure will reach $152 billion in 2027, with a compound annual growth rate (CAGR) of 10.6%, accounting for 68.8% of total compute and storage infrastructure spend.
In 2027, IDC projects that shared cloud infrastructure spending will account for 70.5% of the total cloud spending, reaching $107.1 billion, with an 11.1% CAGR growth.
For dedicated cloud infrastructure, IDC projects spending to grow to $44.9 billion at a CAGR of 9.7%. Spending on non-cloud infrastructure will not exponentially increase, with a projection of 1.6% CAGR, reaching $68.9 billion in 2027.
IDC expects spending by service providers on compute and storage infrastructure to reach $148.9 billion, and will grow at a 10.4% CAGR in 2027.
