Digital Infrastructure Growth: Sky's The Limit?

Times of India reports that strong demand boosted sales of infrastructure products like server, storage and ethernet switches for global cloud IT by 25.1% year-on-year to $6.27 billion in the first quarter of 2015, research firm IDC has said. The industry segment had an estimated revenue of $5.01 billion in January-March quarter of 2014. Cloud computing facilitates sharing of technological resources, software and digital information. It operates on a pay-per-use model, helping companies to cut costs as they do not have to invest heavily in infrastructure.

According to various industry reports, public and private cloud services is expected to be a multi-billion opportunity for IT firms as clients move to the cloud to host their data and applications to become more agile and increase cost efficiencies. Public IT cloud services spending alone are estimated to grow to more than $127 billion in 2018. Interestingly, cloud accounted for nearly 30% of the overall spending on IT infrastructure in the January-March 2015 period, up from 26.4% a year ago, IDC said in a statement.

Also TOI reports "Cloud computing is going to change everything whether you like it or not," Vimal Thomas, vice president of Yamaha of America tells us. "Get in front of it before it starts landing on top of you." Thomas ought to know. He completed an unprecedented project to move nearly all of the company's 200 computer servers to Amazon's cloud, Amazon Web Services, getting rid of his company's data centers and saving $500,000 a year in the process. Nearly every company is using public cloud computing services like AWS these days (Microsoft, Google, and IBM also have similar services.)

This is a market that will grow 21% year over year to $32 billion in 2015, and account for about one-third of all IT infrastructure spending, according to IDC. But very few companies are ditching the old way completely for the cloud. Most simply adding cloud computing to the mix and keeping their own computer servers and software "on-premises" in a data center, when they feel that such tech would be too costly, or perhaps unsafe, to move to the cloud. Thomas told Business Insider that in late 2013, after analyzing his budgets, he realized that keeping his own computers simply wasn't a good idea.

Sky's the limit for growth in digital infrastructure?


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