According to a recent IDC report, spending on compute and storage infrastructure products for cloud infrastructure decreased 2.4% year over year in the second quarter to $16.8 billion. This decrease comes after six quarters of year-over-year growth, and most notably compares to the 39.1% annual growth seen by the market in 2Q20, when the world just entered the pandemic with the first wave of business and country closures causing a spike in investments in cloud services and infrastructure. Investments in non-cloud infrastructure increased 3.4% year over year in 2Q21 to $13.4 billion recovering from a 7.2% decline in 2Q20.
Spending on shared cloud infrastructure reached $11.9 billion, a decrease of 6.1% compared to 2Q20, and a 17% increase from 1Q21. Weakness in year-over-year demand from public cloud service providers comes after an exceptionally strong 2Q20, in which spending increased 55.5% driven by the spike in demand for cloud services in the first months of the pandemic.
Despite weakness in 2Q21, IDC is forecasting cloud infrastructure spending to grow 12% to $74.3 billion for 2021, while non-cloud infrastructure is expected to grow 2.7% to $58.9 billion after two years of declines. Shared cloud infrastructure is expected to grow by 11.1% year over year to $51.4 billion for the full year. Spending on dedicated cloud infrastructure is expected to grow 14.1% to $22.8 billion for the full year.
IDC’s Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment is designed to provide clients with a better understanding of what portion of the compute and storage hardware markets are being deployed in cloud environments.
The report underscores the opportunity for channel partners to offer better protection to their customers at a time when Zero Trust security architectures are gaining momentum.