Cloud Infrastructure Market Grows by 25.1% in the First Quarter

Businesses of all sizes are investing more of their IT budget in cloud infrastructure (servers, network equipment, storage…) as seen in the 25% year over year growth in the first quarter.  They are buying servers, SAN/NAS devices and networking equipment.  This doesn’t include any expenditures on cloud services which is growing even faster.

Cloud services providers are making the investment to provide services to their customers.  They are investing in a common infrastructure to be shared by all of their customers.

Businesses with dedicated IT resources are also investing in cloud infrastructure to build out their own private clouds.  It may be a single high-performance, reliable private cloud server configured with a cloud software layer or a complete cloud with separate processing nodes, SAN storage, and high performance network.  They are managing their virtual environments with virtualization technologies like Proxmox, VMWare, Microsoft Hyper-V, or other open source solution.

What are customers buying?  Dell and HP equipment hold the top two spots as the largest providers of equipment, but combined, they account for only 25% of spending on cloud infrastructure.  Most of the money on cloud infrastructure is being spent with smaller vendors building specialized devices or less well known brands.

As for the future of cloud infrastructure spending, there is no reason to expect the growth to taper off.  More and more businesses are seeing the advantages of a virtualized/cloud infrastructure and are using their budgets to take advantage of the opportunities.  The flexibility that a cloud infrastructure provides is a definite advantage to any company relying on their IT systems.

We at Ripple Web are definitely contributing to this trend as we are investing in our cloud infrastructure every day.  Meeting our customer’s demands with the latest technology, storage, network and services is our top priority and takes a significant investment in our infrastructure.

Source: Business Wire