Just so you know: IT infrastructure spending expected to jump this year

Wed, 2016-04-20 07:00 -- SCC Staff


Of that total dollar amount, public IT infrastructure spending is expected to account for $24.4 billion an increase of 14.1% through 2016 as cities and other governments and public agencies increasingly turn to it to help them manage and expand the services they provide.

Geographically speaking, IDC expects the higher level of public IT infrastructure spending to happen in most parts of the world. According to the firm's Worldwide Quarterly Cloud IT Infrastructure Tracker, spending on Ethernet switches will grow the most at 26.8%, with investment in server and storage products of a little less than half that amount. Over the next four years, IDC forecasts spending on IT infrastructure for cloud environments to continue at a compound annual growth rate of 12.5% while spending on other IT infrastructure is expected to drop slightly.

As Natalya Yeshkova, Research Director for Storage Systems at IDC explained, "For the majority of corporate and public organizations, IT is not a core business but rather an enabler for their core businesses and operations. Expansion of cloud offerings creates new opportunities for these businesses to focus efforts on core competencies while leveraging the flexibility of service-based IT."

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