Non-cloud infrastructure spending grew by 28.6% in 3Q to $19.6 billion.
“After a year where the demand was focussed on server infrastructure build-up for AI model development and training, we will start to see more investments oriented to AI model inferencing that will shift demand towards less dense GPU based platforms,” says IDC’s Juan Pablo Seminara.
Spending on shared cloud infrastructure reached $47.9 billion in the quarter, increasing 136.5% compared to a year ago.
The shared cloud infrastructure category continues capturing the largest share of spending compared to dedicated deployments and non-cloud spending, in 3Q24 shared cloud accounted for 62.4% of the total infrastructure spending.
The dedicated cloud infrastructure segment presented lower growth of 47.6% year-over-year in 3Q24 to $9.3 billion.
For 2024, IDC is forecasting cloud infrastructure spending to grow 74.3% compared to 2023 to $192.0 billion.
Non-cloud infrastructure is expected to grow 17.9% to $71.4 billion.
Shared cloud infrastructure is expected to grow 88.9% year over year to $157.8 billion for the full year, spending on dedicated cloud infrastructure is also expected to have a double-digit growth in 2024 with 28.6% to $34.2 billion for the full year..
The fastest growing regions for cloud spending were USA and China showing triple digit growth of 148.3% and 100% each, the regions showed double digit growth were APeJC, Japan, Western Europe, Canada and Latin America with 90.3%, 73.5%, 40.1%, 38.5% and 34.8%, respectively. While Middle East & Africa showed on digit growth 6.7%, Central & Eastern Europe was the only one declining at -1.7%.
Long term, IDC predicts spending on cloud infrastructure to have a compound annual growth rate (CAGR) of 24.2% over the 2023-2028 forecast period, reaching $325.5 billion in 2028 and accounting for 78.8% of total compute and storage infrastructure spend.
Shared cloud infrastructure spending will account for 79.1% of the total cloud spending in 2028, growing at a 25.2% CAGR and reaching $257.4 billion.
Spending on dedicated cloud infrastructure will grow at a CAGR of 20.7% to $68.2 billion.
Spending on non-cloud infrastructure will also rebound with a 7.6%CAGR, reaching $87.5 billion in 2028.
