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EMEA cloud infrastructure spending grows nearly 40%

Latest figures show strong growth across the EMEA region, with IDC predicting the market to reach a value of $10.5bn by 2020

EMEA cloud IT infrastructure revenue grew by nearly 40% year-on-year in the second quarter, according to the latest statistics 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 EMEA grew by 37.4% compared to the same period last year, reaching $1.4bn in revenue in the second quarter of 2016.

"IDC expects this market to reach a value of $10.5 billion by 2020 (from a five year forecast), or 36.5 % of the total market expenditure," said Kamil Gregor, research analyst, European Infrastructure group, at IDC. "Fueled by increasing maturity and adoption rates of many new cloud-dependent technologies, such as the Internet of Things, cloud continues to represent an area of tremendous growth for the European infrastructure sector."

Interestingly, IDC said that any fallout seen from the Brexit vote was not significant enough to revise its five-year forecast.

"Cloud infrastructure vendors reported a brief disruption of their operations immediately after the referendum, but since then, business seems to have continued as usual,” Gregor said, adding: “Enterprises may re-evaluate where their cloud data is located if Brexit causes a mismatch of regulatory rules in the U.K. and the rest of the region in the long-term future.”

Worldwide revenue for cloud IT grew by 14.5% year over year to $7.7bn in the same period.

The overall share of cloud IT infrastructure sales increased to 34.9%, up from 30.6% a year ago.

In traditional IT deployments, server declined the most (7.5% year over year) with Ethernet switch and storage declining 2.2% and 2.0%, respectively.

From a regional perspective, vendor revenue from cloud IT infrastructure sales grew fastest in Latin America at 44.0% year over year in 2Q16, followed by Western Europe at 41.2%, Japan at 35.4%, Canada at 21.8%, Central & Eastern Europe at 21.0%, Middle East & Africa at 16.8%, Asia/Pacific (excluding Japan) at 15.8%, and the United States at 6.7%

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