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Private and public cloud fuelled Emea infrastructure sales in Q3, shows IDC data

Demand for traditional IT hardware slumps, as sales of private and public cloud-enabling technologies soar, shows IDC data

Demand for private cloud-enabling technologies continued to grow at pace across Europe, Middle East and Africa (Emea) during the third quarter of 2016, IDC’s cloud infrastructure sales data shows.

The market watcher’s Quarterly Cloud Infrastructure Tracker shows revenue generated by the sales of private cloud-enabling technologies were up 24.8% on the previous year, and hit $0.9bn during the third quarter.

The revenue generated by sales of public cloud infrastructure grew 13.9%, year-on-year, and topped $0.7bn, suggesting the private versus public cloud debate will continue to rage across Emea for a long time to come.

Meawhile, sales of traditional, on-premise hardware were down 14.5% year-on-year, but still account for around 59% of the revenue generated by the market as a whole.

According to IDC, a lot of the demand for private cloud technologies in the region is being fuelled by enterprises looking to refresh and consolidate their on-premise infrastructure.

Jiri Helebrand, research manager for Systems and Infrastructure Solutions at IDC at Central and Eastern Europe, the Middle East, and Africa (Cema), said: “Private cloud deployments have been driving growth in the Cema region as organisations that are consolidating their IT infrastructure seek greater flexibility, lower capex [capital expenditure], and faster implementation over traditional IT infrastructure.”

The IDC tracker monitors sales of the servers, storage and networking technologies used to underpin both public and private cloud environments.

The market watcher predicts, by 2020, the cloud-related portion of the entire Emea infrastructure market, which includes on-premise hardware, will be worth $10.9bn and account for around 35.4% of total sales.  

During the third quarter of 2016, private and public cloud-enabling technologies made up around 24.9% of Emea-wide infrastructure sales, up 6% on the previous year.  

Read more about cloud adoption trends

Kamil Gregor, research analyst in the European Infrastructure Group at IDC, said the growing demand for cloud technologies ties in with several other industry megatrends.

“Fuelled by increasing maturity and adoption rates of many new cloud-dependent technologies such as the internet of things [IoT], cloud continues to represent an area of tremendous growth for the European infrastructure sector,” said Gregor.

“In western Europe, we are beginning to see not only specific solutions based on third platform and innovation accelerator technologies, but increasingly often innovative solutions that combine multiple technologies to harness unique value that none of the technologies could unlock alone.

“For example, several emerging industry clouds in the region combine data from the internet of things edge devices with real-time and big data analytics in subverticals, such as advanced building automation, manufacturing asset management and predictive maintenance.”

In a cautionary note to the supplier community, Gregor pointed to the changing political and data protection landscape across Europe and the impact this is having on cloud adoption rates.

“Regulatory compliance is becoming an increasingly important inhibitor of cloud adoption in the region, mainly due to political volatility in the EU, both in 2016 and potentially continuing throughout 2017, and as we approach the end of a two-year transition period for the EU’s General Data Protection Regulation,” he said.

“Enterprises at the bleeding edge of innovation are looking into ways of mitigating these issues, for example by taking blockchain technology from the world of financial transactions and applying it to automation of policy compliance in complex cloud environments.”

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