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EMEA cloud IT infrastructure revenue grows to $1.3bn in Q1

IT infrastructure spending for public and private cloud in EMEA grew by 17.6% in the first quarter of 2016, according to the latest figures from IDC

EMEA cloud infrastructure revenue grew by nearly 20% in the first quarter of 2016, according to the latest figures from IDC.

The WW Quarterly Cloud Infrastructure Tracker found that IT infrastructure spending (server, disk storage, and Ethernet switch) for public and private cloud in the EMEA region grew by 17.6% year over year to $1.3bn (£980m) in Q1. IDC tracks the likes of Cisco, Dell, EMC, Fujitsu, Hitachi, HP, IBM, Lenovo, NetApp, Oracle, the major ODM vendors, and smaller players to come up with its quarterly figures.

"IDC expects this market to reach a value of $10.7 billion by 2020, or 46.4% of total market expenditure, making it one of the strongest growth areas for the European infrastructure sector, compared with the expectation of a stagnant, if not declining, traditional market," said Kamil Gregor, research analyst, European Infrastructure Group, IDC.

It would seem that, like everyone else, IDC hadn’t forseen a Brexit vote, as the firm admitted that the forecast did not include the potential impact of the UK leaving the EU.

"Our forecast for the UK may be adjusted downward in the following quarter as IDC expects a 'challenging transition' if the UK activates the process of EU withdrawal. Other EMEA markets are expected to remain largely unaffected," said Gregor.

Globally, vendor revenue from cloud IT infrastructure grew by 3.9% year over year to $6.6bn for the quarter.

"A slowdown in hyperscale public cloud infrastructure deployment demand negatively impacted growth in both public cloud and cloud IT overall," said Kuba Stolarski, research director for Computing Platforms at IDC. "Private cloud deployment growth also slowed, as 2016 began with difficult comparisons to 1Q15, when server and storage refresh drove a high level of spend and high growth. As the system refresh has mostly ended, this will continue to push private cloud and, more generally, enterprise IT growth downwards in the near term.

“Hyperscale demand should return to higher deployment levels later this year, bolstered by service providers who have announced new datacenter builds expected to go online this year.”

Hewlett Packard Enterprise (HPE) maintained its lead position in the sector with a 17.2% share of the cloud infrastructure market. Cisco and Dell finished in a statistical tie for the second place (11.9% and 11.8% respectively). EMC followed, while NetApp, IBM, and Lenovo each claimed a three-point-something percentage of the market.

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