In the first quarter of 2021, spending on compute and storage infrastructure goods for cloud infrastructure, comprising dedicated and shared environments, grew 12.5 percent year over year to $15.1 billion, according to IDC. Non-cloud infrastructure investments grew 6.3 percent year over year to $13.5 billion in Q1 2021.

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As the market and the globe slowly recover from the COVID-19 epidemic, the economy’s most revenue-depleted sectors are beginning to flourish again, says IDC. Increased reliance on cloud platforms for delivering commercial, educational, and social applications, as well as an increased focus among organizations on business continuity and risk management, would have a long-term impact on IT infrastructure, helping to drive digital transformation initiatives and increase use of as-a-service delivery models.

In Q1 2021, spending on shared cloud infrastructure grew by 11.6 percent year over year to $10.3 billion. In the near future, shared cloud infrastructure investment is expected to overtake non-cloud infrastructure spending, according to IDC. In Q1 2021, spending on dedicated cloud infrastructure rose 14.7% year over year to $4.8 billion, with 45.5 percent of it spent on client premises. Throughout IDC’s projection, cloud settings are expected to outperform non-cloud environments.

IDC expects cloud infrastructure spending to grow 12.9 percent to $74.6 billion in 2021, after two years of declines, thanks to strong first-quarter results and the overall infrastructure market beginning to recover from the pandemic. Non-cloud infrastructure spending is expected to grow 2.7 percent to $58.5 billion. For the whole year, shared cloud infrastructure is anticipated to expand by 12.2% year over year to $51.8 billion. For the whole year, dedicated cloud infrastructure spending is anticipated to rise 14.7 percent to $22.7 billion.

Compute and Storage Infrastructure

IDC analyzes several kinds of service providers and how much compute and storage infrastructure they acquire, including both cloud and non-cloud infrastructure, as part of their Worldwide Quarterly Enterprise Infrastructure Tracker: cloud service providers, digital service providers, communications service providers, and managed service providers are the service provider categories that IDC tracks.

Service providers spent $15.5 billion on computing and storage infrastructure in the first quarter of this year, increasing 12.5 percent year over year and accounting for 54.0 percent of overall compute and storage infrastructure investment. According to IDC, service providers will spend $74.7 billion on computing and storage in 2021, up 11.1 percent year over year.

In Q1 2021, cloud infrastructure spending grew in most areas, with the largest annual growth rates in Canada (40.3%), China (PRC) (35.0%), and Asia/Pacific excluding Japan and China (APeJC) (28.8 percent). Western Europe expanded by 10.8%, the United States by 4.5 percent, while Japan shrank by 1.1 percent. The results were mixed in the smaller areas, which together rose by 0.1 percent.

In Q1 2021, all major vendors increased their cloud infrastructure revenue, with Lenovo (38.2 percent) and Huawei (38.2 percent) having the greatest growth rates (37.9 percent). When compared to the first quarter of the previous year, Huawei, Lenovo, and HPE/H3C all increased their market share.