Not only is there no indication that global cloud growth is slowing, but there are many signs both outside and inside Equinix that show enterprise cloud strategies continuing to expand rapidly across the global IT landscape.
IDC’s Worldwide Quarterly Cloud IT Infrastructure Tracker measures the server, storage and networking hardware that is being deployed in cloud environments. In the first quarter of 2015, the tracker reported that cloud IT infrastructure equipment represented approximately 30% of the global IT infrastructure spend, which includes both public and private clouds.
Public cloud IT infrastructures led with $3.9 billion, and private cloud followed at $2.4 billion – totaling $6.3 billion, a 21.5% year-over-year (YOY) increase. IDC estimates that by the end of 2015, cloud IT infrastructure spending will rise to $32 billion (21% YOY). Annual public cloud spending will continue to lead, growing to $21 billion (25% YOY), and private cloud IT expenditures will total $12 billion (16% YOY).
According to Kuba Stolarski, research manager, server, virtualization and workload research at IDC, “Both private and public cloud infrastructures have been growing at a similar pace, suggesting that customers are open to a broad array of hybrid deployment scenarios …”
Notably, in 2014, IDC expanded its worldwide coverage to include Asia/Pacific (excluding Japan), Canada, Central and Eastern Europe, Japan, Latin America, the Middle East and Africa, the U.S., and Western Europe. In the last quarter of 2014, the U.S. led in overall cloud IT infrastructure spending, followed by Asia/Pacific and Western Europe, which had the highest YOY growth in cloud IT spending, at 30%. In 2015, Western Europe is expected to continue to have the highest growth in cloud IT infrastructure spending (32% YOY), followed by Latin America (23% YOY), Japan (22% YOY) and the U.S. (21% YOY).
Moving abroad on the cloud
The worldwide expansion of cloud IT infrastructure sales is a key indicator of how today’s enterprises see the cloud as the conduit for growth and expansion in a global digital economy.
As we survey Equinix’s global cloud ecosystem, we can see similar growth trends. More than 100 companies are currently on the Equinix Cloud Exchange in 21 markets worldwide. And according to a recent Oxford Economics study, 38% of the enterprises said cloud was driving their businesses’ global expansion and that is expected to rise to 47% of the companies going abroad via cloud over the next three years.
IDC’s summation that the parallel tracking of public and private cloud equipment spending suggests a trend in enterprise adoption of hybrid/multi-cloud infrastructures is right in line with what we are seeing with Equinix customers. Global studies of cloud adoption by Dimensional Research for Equinix in North America, United Kingdom, Germany, Singapore and Australia documents worldwide enterprise strategies for deploying multiple clouds over the next year.
Getting there through global interconnection
A critical factor in helping enterprises leverage the cloud for global expansion is interconnection. And not just any garden-variety interconnection, but rather high-performance, secure interconnection that enables enterprises to directly access a choice of multiple clouds worldwide, without the performance and security risks of going over the public Internet.
Such freedom of choice allows enterprises to leverage more cost-effective interconnections to one or more cloud providers; make strategic decisions on what the best cloud service is, given specific workloads; and address any country-specific residency or compliance regulations that require data to reside in its country of origin (either on-premises or in a local cloud).
By becoming an interconnected enterprise, you can successfully deploy cloud along with other interconnection-oriented strategies for greater and faster global expansion.
You can learn more by reading our blog series on the Interconnected Enterprise.