IDC: Cloud Spending Down for Quarter But Still on Pace for Annual Growth

Despite a slowdown in the second quarter, spending on cloud-based computing and storage infrastructure products is expected to grow 12% in 2021, according to a new report from International Data Corporation (IDC).

The IDC Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment report found that spending on cloud infrastructure fell 2.4% year over year in the second quarter of 2021 to $16.8 billion, the first decline after six quarters of growth. The fastest growth was in the second quarter of last year as the world had just entered the pandemic. The first wave of business and country closures resulted in a sharp rise in investments in cloud services and infrastructure.

Though cloud infrastructure spending fell in the most recent quarter, investments in non-cloud infrastructure increased 3.4% year over year in the second quarter to $13.4 billion, recovering from a 7.2% decline in 2Q20.

For the full year, IDC expects cloud infrastructure spending to grow to $74.3 billion for 2021, while non-cloud infrastructure spending is expected to grow 2.7% to $58.9 billion, following two years of declines. Additionally, shared cloud infrastructure spending is expected to grow by 11.1% to $51.4 billion, while spending on dedicated cloud infrastructure is expected to grow 14.1% to $22.8 billion for the full year.

Year-over-year changes in cloud infrastructure spending were mixed, according to the IDC report. Spending increased across the Asia/Pacific subregions, Latin America, Canada and Central and Eastern Europe, while falling in the United States, Western Europe and the Middle East and Africa. Canada had the strongest year-over-year increase in cloud infrastructure spending in the quarter, at 25.6%, while Western Europe recorded the strongest decline at 8.8%. For the full year, spending on cloud infrastructure is expected to increase across all regions compared to 2020.


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