Spending on cloud computing and storage infrastructure continues to rise. Despite challenges such as decreased demand and rising prices, a promising future is expected for cloud infrastructure, which is establishing itself as a key solution for the computing and storage needs of companies.
The reality behind the consumption of Cloud infrastructure is derived from the search for solutions as a service, which can be consumed in an agile and flexible manner, which must include cybersecurity benefits, business continuity and task automation.
It is important to highlight that globally the trends and challenges of a sustainable business vary increasingly rapidly and require technological solutions that leverage decision-making in an immediate, proactive and versatile manner.
In an increasingly digitalized and technology-oriented world, cloud computing and storage infrastructure is playing a critical role. The latest data provided by IDC is a clear sign that the present and future of the cloud are promising and full of opportunities.
During the first quarter of this year, spending on cloud computing and storage infrastructure experienced growth of 14.9%, reaching $21.5 billion. This amount far exceeded investments in non-cloud-based infrastructure, which stood at $13.8 billion. These numbers are a clear testament to the confidence that companies have in the cloud as a solution for their data storage and processing needs.
Within IT environments, $5.8 billion was allocated, while spending on shared cloud infrastructure reached $15.7 billion, with a significant increase of 22.5%. This data underscores the growing adoption of the cloud as an essential tool for data management in businesses of all sizes.
However, not everything is positive. A decrease in demand for systems units has been observed in the last two quarters, with a drop of 11.4%. This is due in part to substantial increases in prices, with a 29.7% increase in the average sales price, derived from variables such as inflation and the lack of inputs necessary to meet demand.
Kuba Stolarski, vice president of research at IDC, notes that while the overall outlook for the year remains positive, future growth will largely depend on volume momentum. A prolonged stagnation in demand could represent a major headwind to growth in the rest of the year.
Despite these challenges, IDC’s forecasts are optimistic. Cloud infrastructure spending is expected to reach $96.4 billion in 2023, representing a 7.3% improvement compared to previous forecasts. This demonstrates that confidence in the cloud as a critical solution for enterprise compute and storage needs continues to rise.
In summary, the steady growth in spending on cloud computing and storage infrastructure during the first part of this year is an encouraging sign. Despite the challenges, adoption of the cloud as a data storage and processing solution continues to grow. The future of cloud infrastructure and solutions as a service seems bright and full of possibilities for companies seeking to stay at the forefront in the digital world, adopting artificial intelligence, sustainability and the constant evolution of their processes, as part of your business.
Director of Cloud Solutions at SAP North Latin America Region