DataCenterNews Asia Pacific logo
Specialist data center news for Asia Pacific
Story image

IDC lowers cloud spending forecast amidst global slowdown

FYI, this story is more than a year old

IDC has lowered its forecast for total cloud infrastructure spending for 2019 as the market enters a slowdown period.

The analyst firm's Worldwide Quarterly Cloud IT Infrastructure Tracker indicates that vendor revenue from IT infrastructure products decreased 10.2% year over year in Q2 2019, pulling in sales of US$14.1 billion.

IDC defines IT infrastructure products as server, enterprise, and ethernet switch for public and private cloud environments.

IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $63.6 billion, down 4.9% from last quarter's forecast, and signalling a decline of 2.1%.

Vendor revenue from hardware infrastructure sales to public cloud environments in 2Q19 dropped 0.9% compared to the previous quarter (1Q19), and down 15.1% year over year to $9.4 billion.

This, according to IDC, is because the market segment is impacted by demand from a handful of hyperscale service providers, “whose spending on IT infrastructure tends to have visible up and down swings”.

DC expects the public cloud IT infrastructure segment to drop to $42.0 billion, a 6.7% decrease from 2018. Conversely, Q2 2019 vendor revenues from private cloud environments increased 1.5% year over year reaching $4.6 billion. IDC expects spending in this segment to grow 8.4% year over year in 2019.

“or the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.0%. Longer-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.

Ethernet switch spending is expected to grow 13.1%, however storage platform spend will drop 6.8% and compute platform spend will drop 2.4%.  IDC says compute will remain the largest category of spending on cloud IT infrastructure at $33.8 billion.

Despite the global slowdown in cloud sales, most geographical regions grew cloud IT infrastructure revenues in Q2.

IDC says that Middle East - Africa grew rapidly at 29.3% year over year, followed by Canada at 15.6% year-over-year growth. Other growing regions in 2Q19 included Central - Eastern Europe (6.5%), Japan (5.9%), and Western Europe (3.1%).

Cloud IT Infrastructure revenues were down slightly year over year in Asia/Pacific (excluding Japan) by 7.7%, Latin America by 14.2%, China by 6.9%, and the USA by 16.3%.

IDC also reports a 6.6% drop in sales of IT infrastructures into traditional, non-cloud environments.

“For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 5.8%, as the technology refresh cycle driving market growth in 2018 is winding down this year,” IDC states.

“By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 41.8% of total worldwide IT infrastructure spending (down from 52.0% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.

According to IDC, the five highest grossing cloud IT infrastructure vendors (in terms of market share and revenue) are: Dell Technologies; HPE/New H3c Group; Cisco; Inspur/Inspur Power Systems; Lenovo; and IDM Direct.

Related stories
Top stories
Story image
Network Management
Data is growing at breakneck speed, but are we optimising its value?
Data lies at the heart of digital transformation, as every digital touchpoint translates to a data point. In this digital-first world, data is being created everywhere today – at breakneck speeds.
Story image
Data Protection
Cloudflare brings Data Localisation Suite to more APAC businesses
This allows any business in these countries to service their data locally while benefiting from the speed, security, and scalability of Cloudflare’s global network.
Story image
Data Centre Cooling
The world is heating up, but data centres should keep their cool
With the world heating up, the challenge of keeping data centres cool becomes more complex, expensive and power intensive.
Story image
Artificial Intelligence
ASUS Servers announce AI developments at NVIDIA GTC
The Taiwanese multinational now offers NVIDIA-certified servers with H100 Tensor Core GPU and AI enterprise software suite.
Story image
Sustainable IT
Equinix partners NUS to use hydrogen tech in data centres
The partners will develop hydrogen fuel technologies for green data centres in tropical climates, and for use in Equinix’s global network.
Story image
IT Automation
Juniper Networks announces expansion of Apstra Software with Apstra Freeform
The newly announced Apstra Freeform technology will give customers the ability to manage and automate operations for data centers regardless of the architecture.
Story image
Software-as-a-Service
Honeywell launches Data Center Suite for business outcomes
Honeywell has launched its Data Center Suite, a portfolio of outcome-based software offerings to help data centre managers and owners.
Story image
Cloud
SoftIron announces its newest flagship offering, HyperCloud
SoftIron has announced HyperCloud, the world's first full turnkey, completely integrated and supported Intelligent Cloud Fabric and the company's newest flagship offering.
Story image
Microsoft
VMware extends collaboration with Microsoft for enterprise workloads in Azure
Mutual customers will have the choice to purchase Azure VMware Solution through the VMware Cloud Universal program.
Story image
Sustainable IT
New report calls for tighter guidelines on data centre sustainability
A new Cushman & Wakefield report is calling for water consumption and carbon emissions to be measured in addition to power usage.
Story image
Digital Transformation
NTT launches its Cyberjaya 6 data center in Malaysia
NTT expands its hyperscaler footprint in Malaysia with its sixth data center facility, supporting the growing digital economy.
Story image
Edge Computing
NTT launches Edge-as-a-Service to accelerate automation
"Minimum latency, maximum processing power, and global coverage are exactly what enterprises need to accelerate their digital transformation journeys.”
Story image
Partnerships
NCS, FPT Software launch Strategic Delivery Centre in Vietnam
The new partnership is designed to support increasing demand for high quality digital services across the region.
Story image
Storage
Seagate announces next gen advanced storage arrays
The new Exos X systems feature up to twice the performance of the previous generation and enhanced enterprise-class durability, the company states.
Story image
Cloud
DCI plans to build new cloud edge data centre in Canberra
DCI is one of the first to commit to the Precinct which has a focus on defence, space, cybersecurity and high-tech manufacturing sectors.
Story image
Sustainable IT
Empyrion DC announces 40MW green data center in South Korea
Empyrion DC has announced it is developing a 40MW green data center in Gangnam, Seoul, South Korea (GDC).
Story image
Data Protection
iseek secures Queensland Government data centre contract
iseek secures the Queensland Government's core network data centre as-a-service contract after a competitive procurement process undertaken by the CITEC.
Story image
Data analytics
Srisawan Hospital to enhance patient experience with InterSystems TrakCare
The new Srisawan Hospital in Bangkok has chosen InterSystems TrakCare to help create enhanced patient experiences and promote further digital engagement.
Story image
Network Infrastructure
Vertiv launches solutions to better manage edge computing
Vertiv has introduced new power and cooling solutions for the edge of the network, including the addition of lithium-ion models to a leading on-line UPS family.
Story image
Digital Transformation
Nanyang Technological University Singapore builds digital brand presence
Leveraging the customisation features of Sitefinity DX, non-technical users could upload content and create design pages and boost work productivity. 
Story image
Hyperscale
Growth in hyperscale data centres to increase shortage of IT workers
New Zealand's tech worker capacity is set to come under increasing pressure as the number of hyperscale data centres grows.
Story image
Software Defined Wide Area Network
Axiata, Versa Networks partner for enterprise SASE in Asia
Axiata has partnered with Versa Networks to deliver Secure Access Service Edge (SASE) technology to rapidly digitalising Asian enterprises.
Story image
Software-as-a-Service
Cloudera launches all-in-one data lakehouse cloud service
CDP One makes it faster, easier and less risky for businesses to move to the cloud and migrate existing workloads to a modern data architecture.
Story image
Data center
Macquarie Asset Management acquires stake in ST Telemedias VIRTUS Data Centres
"We will further strengthen VIRTUS' focus on sustainability by backing investment in its technology and enhancing the lifecycle management of its equipment."
AWS Marketplace
Whitepaper: A practical guide for mitigating risk in today’s modern applications
Link image
Story image
5G
Worldwide 5G mobile data traffic exploding - report
"With 5G, there is a wider range of deployment scenarios, forcing vendors to provide comprehensive solutions to support every need."
Story image
Google Cloud Platform
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Optical Networking
NEC predicts AON as a next-generation infrastructure
NEC's open optical transmission devices support multi-vendor configurations, allowing customers to procure and combine equipment from multiple vendors.
Story image
Storage
DCI Data Centers breaks ground on AKL02 center
DCI Data Centers has commenced construction on Auckland's largest data center.
Story image
Multi-cloud
VMware advances multi-cloud management with VMware Aria
Managing apps and infrastructure in a multi-cloud, especially public cloud, and multi-technology environment is complex.
Story image
Data Centre Maintenance / Management
Schneider Electric backs new Leading Edge data centre in Australia
As a result of the new project, regional Australian businesses and communities will likely have greater access to distributed cloud networks.
Story image
Superloop
Stellar financial result after major strategic moves by Superloop
We get a glimpse under the hood at the financial results from 2022 for the connectivity giant Superloop.
Story image
Startup
Zetaris is changing the way we think about data virtualisation
Zetaris was launched on the Microsoft Marketplace and Ingram Micro Cloud Marketplace in Australia in 2020 and has since expanded into nine global markets.
Story image
Firewall
Fortinet unveils compact firewall for hyperscale data centres, 5G networks
"Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet."
Story image
Gartner
SnapLogic named Visionary in two Magic Quadrant categories
SnapLogic has announced that it is the only iPaaS (Integrated Platform as a Service) vendor to be named a Visionary in two Magic Quadrant categories.
Story image
Software-as-a-Service
ManageEngine unveils SaaS availability of Analytics Plus
ManageEngine's Analytics Plus is now available as a software as a service (SaaS) offering, enabling users to set up a completely functional and integrated analytics platform anywhere in under a minute.
Story image
Machine learning
Oracle announces MySQL HeatWave for Amazon Web Services
MySQL HeatWave is a service that combines OLTP, analytics, machine learning, and machine learning-based automation. 
Story image
Data
Talend announces support for Amazon Redshift Serverless
Talend has announced its support for Amazon Redshift Serverless, with the company saying the integration reinforces its commitment and leadership in supporting businesses.
Aws Marketplace
Learn how to implement a backup and recovery plan for a new generation of Kubernetes-based modern applications
Link image
Story image
Update
InterSystems releases updates to its IRIS data platform
Provider of next-generation solutions InterSystems has announced a series of new releases to its award-winning InterSystems IRIS data platform.
Story image
Data center
Australia’s data centre pioneer still leading after 22 years
We look at the fascinating success of Macquarie data centre's over its 22 year life span and how they continue to innovate in a highly contested sector.
Story image
Melbourne
Equinix invests $23m to expand ME2 data centre in Melbourne
Equinix has completed the second phase expansion of its ME2 International Business Exchange data centre, located in Port Melbourne.